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Max Corporation has prepared the following budget for the month of September. Selling Price Variable Cost Unit per Unit per Unit Sales Product A $40.00
Max Corporation has prepared the following budget for the month of September. Selling Price Variable Cost Unit per Unit per Unit Sales Product A $40.00 $20.00 100,000 Product B 30.00 15.00 40,000 Product C 60.00 30.00 10,000 The total fixed costs will be $1,200,000. Max Corporations tax rate is 25 percent. Required: a) If the sales mix remains constant, what dollar amount of sales for each product is required to achieve a net income of $500,000 for the year? b) Compute the net income if Max sells 200,000 units in the proportion of the current budgeted sales levels for the three products
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