Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs. Selling Price Variable Cost Fixed Cost Variety

imageimage

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

Step by Step Solution

3.42 Rating (149 Votes )

There are 3 Steps involved in it

Step: 1

Required A To calculate the sales revenue per month at which the company breaks even we need to dete... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

3rd Edition

9780078025525, 9780077517359, 77517350, 978-0077398194

More Books

Students also viewed these Accounting questions

Question

What are the challenges associated with tunneling in urban areas?

Answered: 1 week ago

Question

What are the main differences between rigid and flexible pavements?

Answered: 1 week ago

Question

What is the purpose of a retaining wall, and how is it designed?

Answered: 1 week ago

Question

How do you determine the load-bearing capacity of a soil?

Answered: 1 week ago

Question

what is Edward Lemieux effect / Anomeric effect ?

Answered: 1 week ago