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1.Odd Wallow Drinks is considering adding a new line of fruit juices to its merchandise products. This line of juices has the following prices and
1.Odd Wallow Drinks is considering adding a new line of fruit juices to its merchandise products. This line of juices has the following prices and costs:
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Selling price per case (24 bottles) of juice | $ | 98 |
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Variable cost per case (24 bottles) of juice | $ | 58 |
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Fixed costs per year associated with this product | $ | 12,840,000 |
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Income tax rate |
| 40 | % |
Required:
a. Compute Odd Wallow Drinks's break-even point in units per year.
b. How many cases must Odd Wallow Drinks sell to earn $1,926,000 per year after taxes on the juice?
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