Question
In: Accounting
Assume that Ocean King Products sells three varieties of canned seafood with the following prices and...
Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs:
| Selling Price per Case |
Variable Cost per Case |
Fixed Cost per Month |
|||||||
| Variety 1 | $ | 5 | $ | 4 | – | ||||
| Variety 2 | 7 | 5 | – | ||||||
| Variety 3 | 12 | 8 | – | ||||||
| Entire firm | – | – | $ | 46,600 | |||||
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? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)
b. Suppose the company is subject to a 35 percent tax rate on income. At what sales revenue per month will the company earn $42,640 after taxes assuming the same sales mix? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Assume that Ocean King Products sells three varieties of canned seafood with the following prices and...
Assume that Ocean King Products sells three varieties of canned
seafood with the following prices and costs:
Selling Price
per Case
Variable Cost
per Case
Fixed Cost
per Month
Variety 1
$
20
$
16
–
Variety 2
21
19
–
Variety 3
26
17
–
Entire firm
–
–
$
49,400
The sales mix (in cases) is 50 percent Variety 1, 25 percent
Variety 2, and 25 percent Variety 3.
Required:
a. At what
sales revenue per month does...
Kun pow produces canned chicken a la king. The chicken a la king passes through three...
Kun pow produces canned chicken a la king. The chicken a la king
passes through three departments: (1) Mixing, (2) Retort
(sterilization), and (3) Packing. In the Mixing Department,
chicken and cream are added at the beginning of the process, the
mixture is partly cooked, and chopped green peppers and mushrooms
are added at the end of the process. Conversion costs are incurred
evenly throughout the mixing process.
NovemberNovember
data from the Mixing Department are as follows:
LOADING...
(Click the...
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and blue. Their unit selling prices are red, $20; white, $35; and
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these products are red, $12; white, $22; and blue, $50. Their sales
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manufactures and sells three products: red, white, and blue. Their
unit sales prices are red, $46; white, $76; and blue, $101. The per
unit variable costs to manufacture and sell these products are red,
$31; white, $51; and blue, $71. Their sales mix is reflected in a
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manufactures and sells three products: red, white, and blue. Their
unit sales prices are red, $47; white, $77; and blue, $102. The per
unit variable costs to manufacture and sell these products are red,
$32; white, $52; and blue, $72. Their sales mix is reflected in a
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these products are red, $38; white, $58; and blue, $78. Their sales
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material has been used to manufacture all three products. The
company has developed...
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manufactures and sells three products: red, white, and blue. Their
unit sales prices are red, $46; white, $76; and blue, $101. The per
unit variable costs to manufacture and sell these products are red,
$31; white, $51; and blue, $71. Their sales mix is reflected in a
ratio of 2:2:1 (red:white:blue). Annual fixed costs shared by all
three products are $141,000. One type of raw material has been used
to manufacture all three products. The company has developed...
Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are...
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manufactures and sells three products: red, white, and blue. Their
unit selling prices are red, $46; white, $76; and blue, $101. The
per unit variable costs to manufacture and sell these products are
red, $31; white, $51; and blue, $71. Their sales mix is reflected
in a ratio of 2:2:1 (red:white:blue). Annual fixed costs shared by
all three products are $141,000. One type of raw material has been
used to manufacture all three products. The company has developed...
National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are...
National Co. manufactures and sells three products: red, white,
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these products are red, $41; white, $61; and blue, $81. Their sales
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Q-7 A company sells its two products A and B. The prices of products A and...
Q-7 A
company sells its two products A and
B. The prices of products
A and B are
$5 and $8 per unit respectively.
The material costs for A and
B are $0.5 and
$1.5 per unit respectively. The labour charges of
$0.5 per unit is same for both of the products
A and B. The
fixed cost of the business is estimated as
$3000.
Formulate the total revenue function if
x1 and
x2 units are
sold of product A...
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