Question
Franklin Prepared Foods (FPF) sells three varieties of microwaveable meals with the following prices and costs: Selling Price per Case Variable Cost per Case Fixed
Franklin Prepared Foods (FPF) sells three varieties of microwaveable meals with the following prices and costs: Selling Price per Case Variable Cost per Case Fixed Cost per Month Meat $ 30.20 $ 23.20 Fish 44.00 32.00 Vegetarian 50.00 45.60 Entire firm $ 31,570 The sales mix (in cases) is 50 percent Meat, 35 percent Fish, and 15 percent Vegetarian. Required: At what sales revenue per month does the company break even? FPF is subject to a 21 percent tax rate on income. At what sales revenue per month will the company earn $32,153 after taxes assuming the same sales mix?
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