Applications Inc. makes three types of electronic kits. The company's total fixed cost is ($ 424,800) Selling
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Applications Inc. makes three types of electronic kits. The company's total fixed cost is \(\$ 424,800\) Selling prices, variable cost, and sales percentages for each type of kit follow:
a. What is the company's break-even point in units and sales dollars?
b. If the company has an after-tax income goal of \(\$ 200,000\) and the tax rate is 25 percent, how many units of each type of kit must be sold for the goal to be reached at the current sales mix?
c. Assume the sales mix shifts to 20 percent Basic, 50 percent Intermediate, and 30 percent Advanced. How does this change affect your answer to (a)?
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Related Book For
Cost Accounting Foundations And Evolutions
ISBN: 9781618533531
10th Edition
Authors: Amie Dragoo, Michael Kinney, Cecily Raiborn
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