(Multiproduct firm) Anaheim Company produces and sells V8 car engines and lawn mower engines in a sales...

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(Multiproduct firm) Anaheim Company produces and sells V8 car engines and lawn mower engines in a sales mix of three V8s to five lawn mower engines. Selling prices for the V8 and lawn mower engines are $1,200 and $240, respectively; respective variable costs are $480 and $160. The com¬ pany’s annual fixed costs are $1,800,000. Compute the sales volume of each engine type needed to:

a. Break even.

b. Earn $800,000 of income before tax.

C. Earn $800,000 of income after tax, assuming a 30 percent tax rate.

d. Earn 12 percent on sales revenue in before-tax income.

e. Earn 12 percent on sales revenue in after-tax income, assuming a 30 percent tax rate.

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Cost Accounting Foundations And Evolutions

ISBN: 9780324235012

6th Edition

Authors: Michael R. Kinney, Jenice Prather-Kinsey, Cecily A. Raiborn

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