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5-16 Marks Open with Google Docs The Yum-E Sandwich Company produces and sells three products with the following actual results for XXXX: Peanut Butter Jam
5-16 Marks Open with Google Docs The Yum-E Sandwich Company produces and sells three products with the following actual results for XXXX: Peanut Butter Jam Sales (Units) 40,000 5,000 20,000 $ $ $ Per 8.00 30.00 20.00 Unit: Sales Direct Material 2.00 6.00 5.00 Direct Labour 1.00 4.00 3.00 Variable Overhead 0.50 2.00 1.50 Fixed Overhead 3.00 6.00 4.00 Production Cost 6.50 18.00 13.50 Product Profit 1.50 12.00 6.50 Other Costs: Sales commissions = 5% of sales Sales salaries $40,000 (fixed) Administrative salaries $30,000 (fixed) Income taxes = 40% of operating income Required: How many units of each product line would the company have to sell if they wished to change the sales mix to 30,000 units of Peanut, 10,000 units of Butter, and 20,000 units of Jam, and earn a net income after taxes of $78,000? (Round to 2 decimal places)
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