Assume that Ocean King Products sells three varieties of canned seafood with the following prices...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs.
Selling Price
per CaseVariable Cost
per CaseFixed Cost
per MonthVariety 1$15$12-Variety 21614-Variety 32114-Entire firm--$48,400
The sales mix (in cases) is 60 percent Variety 1, 25 percent Variety 2, and 15 percent Variety 3.
Required:
a.At what sales revenue per month does the company break even?
b.Suppose the company is subject to a 35 percent tax rate on income. At what sales revenue per month will the company earn $50,245 after taxes assuming the same sales mix?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
