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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
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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