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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
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 Case per Month per Case $ 21 22 27 $ 17 20 18 $49,600 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 $55,315 after taxes assuming the same sales mix? Answer is complete but not entirely correct. 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 $ 258,513 Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs. Variety 1 Variety 2 Variety 3 Entire firm Selling Price per Case $ 21 22 27 Variable Cost per Case Fixed Cost per Month $ 17 20 18 $49,600 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 $55,315 after taxes assuming the same sales mix? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 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 $55,315 after taxes assuming the same sales mix? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.) Sales revenue $ 702,022
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