Question
Hughes Inc. sells two different types of mobile phones. The following data is available for these two products. The company has total annual fixed costs
Hughes Inc. sells two different types of mobile phones. The following data is available for these two products.
The company has total annual fixed costs of $1,115,000 per year. The tax rate for the company is 30%
Requirements:
A. Calculate the number of total phones that Hughes Inc. needs to sell in order to break-even.
B. Calculate the number of each phone that Hughes Inc. needs to sell in order to break-even.
C. Calculate the number of each phone that Hughes Inc. needs to sell in order to earn a pre-tax net operating income of $200,000
D. Calculate the number of total phones that Hughes Inc. needs to sell in order to earn a after-tax net operating income of $175,000
Sales price Variable costs % of sales Mobile Touch $250.00 $175.00 45% Mobile Flip $105.00 $65.00 55%
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