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I have done A and B but I need help with part C 1 The Gong Company produces and sells three types of jigsaws, variable
I have done A and B but I need help with part C
1 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: 2 Variable cost Per Sales Mix as a 3 Product Sales Price Unit Proportion of Total Sales $ 5 A $30 $15 0.1 BB 20 12 0.5 7 40 30 0.4 4 B 9 Budgeted total fixed costs are $700,000. 0 1 Required: 2 3 a. Calculate the break-even point in sales dollars for each product based on the budgeted sales mix. 4 Product A = 200,000, Product B = 1,000,000 and Product C = 800,000 5 b. Determine the sales dollars of each product needed to generate a budgeted after tax profit of $245,000. Assume a 50% tax rate. 6 Product A= 340,000, Product B = 1,700,000 and Product C = 1,360,000 7 C. Determine the sales dollars of each product needed to generate a 15% budgeted retum on sales dollars after taxes. 8Step by Step Solution
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