(Answered) Problem - robbies ribs has the following sales and cost

Accounting

Problem - Robbie's Ribs has the following sales and cost information:

Average number of pounds sold per year - 39,750

Average selling price per pound of ribs - $11.50

Variable expenses per pound:

Raw material - $3.70
Variable labor and overhead - $3.20

Annual fixed costs:

Production expenses - $37,300
Selling & Administrative expenses $15,186

The company's tax rate is 30%. The company's costs have slowly been rising and profits rapidly falling. Robbie Shaw, company president, has asked your help in answering the following questions:

1. What is the contribution margin per pound of ribs? The contribution margin ratio?

2. What is the break-even point in pounds of ribs? In dollars?

3. How much revenue must be generated to produce $39,749 of pretax income? How many pounds of ribs would this level of revenue represent?

4. How much revenue must be generated to produce $24,500 after-tax income? How many pounds of ribs would this represent?

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