Preston Products produces a disinfecting liquid. The liquid is sold in one gallon containers and has the following price and cost characteristics. Sales price
Preston Products produces a disinfecting liquid. The liquid is sold in one gallon containers and has the following price and cost characteristics. Sales price Variable costs Fixed costs $ 66.00 per gallon 42.00 per gallon 540,000 per month Preston Products is subject to an income tax rate of 20 percent. Required: a. How many gallons must Preston Products sell every month to break even? b. How many gallons must Preston Products sell to earn a monthly operating profit of $89,000 after taxes? Note: Round your answer to the nearest whole number. a. Break-even sales in gallons b. Number of gallons to be sold
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