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8.00 Q.3.a. The Sky Inc, manufactures plastic lawn ornaments. Currently the firm manufactures three items: reindeer, snowmen and flamingos. For each reindeer, two snowmen and
8.00 Q.3.a. The Sky Inc, manufactures plastic lawn ornaments. Currently the firm manufactures three items: reindeer, snowmen and flamingos. For each reindeer, two snowmen and four flamingos are sold. Reindeer Snowmen Flamingos Variable product cost Rs. 12.00 Rs. 15.00 Rs. 25.00 Variable selling expenses 6.00 4.50 Variable administrative expenses 3.00 5.50 6.00 Selling price 40.00 35.00 60.00 Annual fed factory overhead Rs. 420.000 Annual lived selling expenses 150,000 Annual fixed administrative expenses 80,178 The firm is in a 40 percent tax bracket Required: a. What is the annual break-even point in revenue? 6. How many reindeer, snowmen, and flamingos are expected to be sold at the break-even paint? c. If the firm desires pre-tax income of Rs. 250,428 how much total revenue is required and how many units of each product must be sold? di If the firm desires after-tax income of Rs. 155,718 how much total revenue is required and how many units of each product must be sold? e If the firm achieves the revenue determined in (d), what is its margin of safety in Rupees and as a percentage
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