Bathtub Rings Corporation manufactures shower curtains that sell for $5.00 each and cost $3.48 to produce. It

Question:

Bathtub Rings Corporation manufactures shower curtains that sell for $5.00 each and cost $3.48 to produce. It also manufactures shower-curtain rings that sell for $1.60 per box and cost $1.22 per box to produce. Fixed costs total $30,000 per year. Bathtub Rings sells five shower curtains for every box of shower-curtain rings that it sells.

Required: (1) How many of each product must Bathtub Rings sell to break even?

(2) How many of each product must Bathtub Rings sell to earn a pretax income of $49,800?

(3) How many of each product must Bathtub Rings sell to earn an after-tax income of $49,800 if the income tax rate is 30%? Lo1

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