Need help ASAP Parker Pottery produces a line of vases and a line...
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Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labour; hence, there is no traceable fixed costs. Common fixed costs equal $17 400. Parkers accountant has begun to assess the profitability of the two lines and has gathered the following data for last year:
Vases
Figurines
Price
$40
$70
Variable costs
$30
$42
Number of units
1 200
400
The tax rate is 28%.
Calculate how many of each product would need to be sold in order to make an after gax profit of $7200
Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labour, hence, there is no traceable fixed costs. Common fixed costs equal $17 400. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: Vases Figurines Price $40 $70 Variable costs $30 $42 Number of units 1 200 400 The tax rate is 28% Calculate how many of each product would need to be sold in order to make an after-tax profit of $7 200
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