Page Portia\'s Salon is contemplating an increase in their rental space that wil
ID: 2594827 • Letter: P
Question
Page Portia's Salon is contemplating an increase in their rental space that will result in a before-tax rent increase of 14,500 per month. If their tax rate is 40%, what is the after-tax monthly increase in rent cost? a. $ 5,800 b. $ 8,700 c. $20,300 d. $14,500 69. Bergman Inc. Bergman Inc, has the following product information available Sales price Variable costs Fixed costs Units produced and sold $20 per unit $8 per unit $18,000 12,000 70.. Refer to the Bergman Inc. information above. What is the break-even point in units? a. 1,500 units b. 643 units c. 600 units d. 900 units 71. Refer to the Bergman Inc. information above. How many units need to be sold in order to earn a target profit of $180,000? a. 24,750 units b. 16,500 units c. 20,842 units d. 22,500 unitsExplanation / Answer
Questio 69). Answer :- Option b). $ 8,700.
Explanation :- After tax rise in rent cost per month = 14500 * (1 - 0.40)
= 14500 * 0.60
= $ 8,700. (Option b).
Question 70). Answer :- Option a). 1,500 units.
Explanation :- Break-even point (in units) = Fixed costs / (Sales price per unit - Variable cost per unit)
= 18000 / (20 - 8)
= 18000 / 12
= 1,500 units. (Option a).
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