Question
Pines Inc. produces and sells two products. During the most recent month, sales of Product A were $60,000 and its variable costs were $40,000. Product
Pines Inc. produces and sells two products. During the most recent month, sales of Product A were $60,000 and its variable costs were $40,000. Product B456's sales were $20,000 and its variable costs were $8,000. Fixed costs were $20,000, and the company has a 25% tax rate. (20 points) Required: a. If the product mix remains constant, what is he overall break-even point in sales dollars for the company. _____________ b. If the product mix remains constant, what level of sales is required for product A and B to earn a total target profit of $12,000? Product A: 90,000 x 75% = $67,500 Product B:
*Please post solutions to this problem - it's a study question for a test - need to know how to set up. Thank you!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started