Professional Robotics Corporation manufactures three different robots in its domestic servants line. Sales information for this line

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Professional Robotics Corporation manufactures three different robots in its “domestic servants” line. Sales information for this line of product is given below:

Butler Maid Bartender Selling price per unit $3,000 $2,500 $4,000 Variable cost per unit 750 750 1,300 Expected sales mix | 2 4 Fixed costs are $2,500,000 Required: (1) What is Professional Robotics’ break-even point, in “units” of sales mix?

(2) To break even, how many Butlers, Maids, and Bartenders must Professional Robotics sell?

(3) Suppose Professional Robotics’ sales during the year were $4,800,000. Assuming a normal sales mix, how many units of each product were sold?

What was Professional Robotics’ pretax income?

(4) Assuming a normal sales mix and an income tax rate of 40%, how many Butlers, Maids, and Bartenders must Professional Robotics sell to earn an after-tax profit of $198,000?  Lo1

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Accounting Information For Business Decisions

ISBN: 9780030224294

1st Edition

Authors: Billie Cunningham, Loren A. Nikolai, John Bazley

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