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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 $ 11 12 17 Variable Cost per Case $ 8 10 13 Variety 1 Variety 2 Variety 3 Entire firm $ 47,600 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 $46,865 after taxes assuming the same sales mix? Complete this question by entering your answers in the tabs below. Required A Required B At what sales revenue per month does the company break even? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.) Break-even revenue Required A Required B Suppose the company is subject to a 35 percent tax rate on income. At what sales revenue per month will the company earn $46,865 after taxes assuming the same sales mix? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.). Sales revenue
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