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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 Variable Price Cost

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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 Variable Price Cost per Case per Case $ 13 $ 10 14 19 Variety 1 Variety 2 Variety 3 Entire firm 15 $48,000 The sales mix (in cases) is 40 percent Variety 1, 35 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 $48,555 after taxes assuming the same sales mix

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