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

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

ekkarill92 answered 1 year ago
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