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Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs. Selling Price Variable Cost Fixed Cost Variety 1
Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs. Selling Price Variable Cost Fixed Cost Variety 1 Variety 2 Variety 3 Entire firm per Month per Case per Case $12 $ 10 10 15 8 11 $47,200 The sales mix (in cases) is 60 percent Variety 1, 25 percent Variety 2, and 15 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 $45,175 after taxes assuming the same sales mix
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