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A week after you have answered Drew's questions, he calls you again with a new exciting sales mix. Drew has realized that he should offer
A week after you have answered Drew's questions, he calls you again with a new exciting sales mix. Drew has realized that he should offer different levels of service rather than simply offering one wash option. The wash options are as follows: Express Wash Wax n shine Full detail TOTAL Expected washes 8,000 4,000 2,000 14,000 Sales Price 20 125 Variable Cost Drew is concerned now with how much after-tax income the company would have if he adopted this sales mix. The tax rate is 20% and Drew thinks the fixed costs will be what you calculated from 7e. Drew would like you to advise him on: What the Net Income would be for the year upcoming What is the company's sales mix What is the break even (in number of washes and in dollar amount) for each product assuming a consistent sales mix If the company wants to earn an after tax profit of $100,000, how many units of each product type must be sold Drew has stressed that he is a little concerned with his expected wash number guesses. You tell him that you can figure out his Safety Margin, both as a percentage and as a dollar amount. A week after you have answered Drew's questions, he calls you again with a new exciting sales mix. Drew has realized that he should offer different levels of service rather than simply offering one wash option. The wash options are as follows: Express Wash Wax n shine Full detail TOTAL Expected washes 8,000 4,000 2,000 14,000 Sales Price 20 125 Variable Cost Drew is concerned now with how much after-tax income the company would have if he adopted this sales mix. The tax rate is 20% and Drew thinks the fixed costs will be what you calculated from 7e. Drew would like you to advise him on: What the Net Income would be for the year upcoming What is the company's sales mix What is the break even (in number of washes and in dollar amount) for each product assuming a consistent sales mix If the company wants to earn an after tax profit of $100,000, how many units of each product type must be sold Drew has stressed that he is a little concerned with his expected wash number guesses. You tell him that you can figure out his Safety Margin, both as a percentage and as a dollar amount
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