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 | $ | 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 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 $54,470 after taxes assuming the same sales mix? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)
Solutions
Expert Solution
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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
$
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...
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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
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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
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Q-7 A company sells its two products A and B. The prices of products A and...
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$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
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