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Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs. Fixed Cost per Month Selling Price per Case
Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs. Fixed Cost per Month Selling Price per Case $ 14 15 20 Variable Cost per Case $ 11 13 13 Variety 1 Variety 2 Variety 3 Entire firm $48,200 The sales mix (in cases) is 50 percent Variety 1, 25 percent Variety 2, and 25 percent Variety 3. Required: a. At what sales revenue per month does the company break even? b. Suppose the company is subject to a 35 percent tax rate on income. At what sales revenue per month will the company earn $49,400 after taxes assuming the same sales mix
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