Future Tech produces basic and advanced model tablets. The basic tablet is sold at $200...
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Accounting
Future Tech produces basic and advanced model tablets. The basic tablet is sold at $200 each, and the advanced tablet is sold at $400 each. The variable cost of making the basic tablet is $120 each. It costs an extra $100 to make the advanced tablet. It takes 12 labor hours to make 100 basic tablets and 18 labor hours to make 100 advanced tablets. There are 3,000 hours of labor time available for production each week. The maximum weekly sales for the basic and advanced tablets are 800 and 300 units, respectively. Fixed production costs total $700,000 per year. All selling costs are fixed.
Required: (a) Determine the optimal production level in number of units for each product. (b) Prepare a trial balance for the company based on the optimal production level. (c) Calculate the company's tax liability assuming a tax rate of 25%.
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