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Could you tell me how to do (c)? The Gong Company produces and sells three types of jigsaws, variable speed (A), single speed (B) and
Could you tell me how to do (c)?
The Gong Company produces and sells three types of jigsaws, variable speed (A), single speed (B) and variable speed with auto-scrolling (C). Budgeted data is given below: Product Sales Price Variable cost Per Sales Mix as a Unit Proportion of Total Sales $ $15 12 30 A B $30 20 40 0.1 0.5 0.4 C Budgeted total fixed costs are $700,000. Required: a. Calculate the break-even point in sales dollars for each product based on the budgeted sales mix. b. Determine the sales dollars of each product needed to generate a budgeted after tax profit of $245,000. Assume a 50% tax rate. c. Determine the sales dollars of each product needed to generate a 15% budgeted return on sales dollars after taxesStep by Step Solution
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