Extension of Basic CVP Model-Multiple Products and Taxes Assume that Ocean King Products sells three varieties of canned seafood with the following prices (L.O. 1)

and costs:

The sales mix (in cases) is 50 percent variety 1, 35 percent variety 2, and 15 percent variety 3.
Required

a. At what sales revenue does the company break even?

b. Suppose the company is subject to a 35 percent tax rate on income. At what sales revenue will the company earn $35,100 after taxes assuming the same sales mix?

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Variety 1 Variety 2 Variety 3 Entire firm Selling Price per case $ 3 Variable Cost per Case Fixed Cost per Month $2 5 3 10 6 $45,000