Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs.

Selling Price per case Variable Cost per Case Fixed Cost per Month

Variety 1 $ 23 $ 19

Variety 2 24 22

Variety 3 29 20

Entire firm $ 50,000

The sales mix (in cases) is 50% Variety 1, 25% Variety 2, and 25% Variety 3.

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 $57,005 after taxes assuming the same sales mix?