Problem 3-69 (Algo) Extensions of the CVP Model-Multiple Products and Taxes (LO 3-4) Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its prices and costs Price Variable cost Units sold per Unit per Unit per Year Cleaning 5 340 5190 Filling 2,000 Capping 1,475 7,500 620 600 830 500 Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $510.000 per year include building and equipment costs, marketing costs, and the costs of administration Painless Dental Clinics is subject to a 20 percent tax rate on income A cleaning unit is a routine teeth cleaning that takes about 45 minutes. A filling unit is the work done to fill one or more cavities in one session. A capping unit is the work done to put a crown on one tooth. If more than one tooth is crowned in a session, then the clinic counts one unit per tooth (eg putting crowns on two teeth counts as two units). Required: a. Given this information, how much will Painless Dental Clinics, Inc., eam each year after taxes? b. Assuming the given sales mix is the same at the break even point at what sales revenue does Painless Dental Clinics, Inc, break even? c. Assuming the given sales mix, at what sales revenue will the company earn $162.000 per year after taxes? d-1. Painless Dental Clinics, Inc. is considering becoming more specialized in cleanings and filings. What would be the company's revenues per year if the number of cleanings increased to 10,500 per year, the number of fillings increased to 2,100 per year, while the number of cappings dropped to zero? With this change in product mix, the company would increase its fixed costs to $560,000 per year. What would be the effect of this change in product mix on the clinic's earnings after taxes per year? d-2. If the clinic's managers seek to maximize the clinics after tax earnings, would this change be a good idea? Complete this question by entering your answers in the tabs below. Reg A GB Reg Reg 01 Reg D2 Glven this information, how much will Paintess Dental Clinics, Inc., earn each year after taxes? Earning Problem 3-69 (Algo) Extensions of the CVP Model-Multiple Products and Taxes (LO 3-4) Assume that Painless Dental Clinics Inc offers three basic dental services. The following are its prices and costs Cleaning Filling Capping Price per Unit $ 340 620 1,475 Variable cost per Unit 5190 500 830 Units Sold per Year 7,500 2,000 500 Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of 5510,000 per year include building and equipment costs, marketing costs, and the costs of administration Painless Dental Clinics is subject to a 20 percent tax rate on Income A cleaning unit" is a routine teeth cleaning that takes about 45 minutes. A filling unit is the work done to fill one or more cavities in one session A capping unit is the work done to put a crown on one tooth. If more than one tooth is crowned in a session, then the clinic counts one unit per tooth (eg., putting crowns on two teeth counts as two units) Required: a. Given this information, how much will Painless Dental Clinics, Inc, earn each year after taxes? b. Assuming the given sales mix is the same at the break-even point, at what sales revenue does Painless Dental Clinics, Inc., break even? C. Assuming the given sales mix, at what sales revenue will the company earn $162.000 per year after taxes? d-1. Painless Dental Clinics, Inc., is considering becoming more specialized in cleanings and fings. What would be the company's revenues per year if the number of cleanings increased to 10,500 per year, the number of filings increased to 2.100 per year, while the number of cappings dropped to zero? With this change in product mix, the company would increase its fixed costs to $560.000 per year. What would be the effect of this change in product mix on the clinic's earnings after taxes per year? d-2. If the clinic's managers seek to maximize the clinic's after-tax earnings, would this change be a good idea? Complete this question by entering your answers in the tabs below. ROGA Red) Regc Red DI Reg D2 Assuming the given sales mix is the same at the break even point at what sales revenue does Painless Dental Clinics, Inc. break even? (Do not round intermediate calculations, Round your final answer to the nearest whole dollar) Break even levere Problem 3-69 (Algo) Extensions of the CVP Model-Multiple Products and Taxes (LO 3-4) Assume that Painless Dental Clinics, Inc. offers three basic dental services. The following are its prices and costs. Cleaning Filting Capping Price per Unit 5340 620 1,475 Variable cost per Unit $190 600 B3e Units sold per Year 7.500 2.000 see Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of 5510.000 per year include building and equipment costs, marketing costs and the costs of administration Painless Dental Clinics is subject to a 20 percent tax rate on income A cleaning unit is a routine teeth cleaning that takes about 45 minutes. A filling unit is the work done to fill one or more cavities in one session A capping unit is the work done to put a crown on one tooth. If more than one tooth is crowned in a session, then the clinic counts one unit per tooth (eg putting crowns on two teeth counts as two units) Required: a. Given this information, how much will Painless Dental Clinics, Inc., earn each year after taxes? b. Assuming the given sales mix is the same at the break-even point at what sales revenue does Painless Dental Clinics, Inc, break even? c. Assuming the given sales mix at what sales revenue will the company earn $162.000 per year after taxes? d-1. Painless Dental Clinics, Inc. is considering becoming more specialized in cleanings and fillings. What would be the company's revenues per year if the number of cleanings increased to 10,500 per year, the number of fillings increased to 2100 per year whee the number of cappings dropped to zero? With this change in product mix the company would increase its fixed costs to $560.000 per year What would be the effect of this change in product mix on the clinic's earnings after taxes per year? d-2. If the clinic's managers seek to maximize the clinic's after-tax earnings, would this change be a good idea? Complete this question by entering your answers in the tabs below. Red A Reg B Regc Red Di Hea 2 Assuming the given sales mix, at what sales revenue will the company earn $162.000 per year after taxes? (Do not found intermediate calculations. Round your final answer to the nearest whole dollar) Sales Problem 3-69 (Algo) Extensions of the CVP Model-Multiple Products and Taxes (LO 3-4) Assume that Painless Dental Clinics, Inc, offers three basic dental services. The following are its prices and costs. Cleaning Filling Capping Price per Unit $ 340 620 1.475 Variable cost Unit $190 600 830 Units Sold per Year 7.500 2,800 500 Variable costs include the labor costs of the dental hygienists and dentists Fixed costs of $510,000 per year include building and equipment costs, marketing costs, and the costs of administration Painless Dental Clinics is subject to a 20 percent tax rate on income A cleaning "unit" is a routine teeth cleaning that takes about 45 minutes. A filling "unit" is the work done to fill one or more cavities in one session A capping unit is the work done to put a crown on one tooth If more than one tooth is crowned in a session, then the clinic counts one unit per tooth (eg, putting crowns on two teeth counts as two units), Required: a. Given this information, how much will Painless Dental Clinics, Inc, earn each year after taxes? b. Assuming the given sales mix is the same at the break-even point , at what sales revenue does Paintess Dental Clinics, Inc., break c. Assuming the given sales mix at what sales revenue will the company earn $162.000 per year after taxes? d-1. Painless Dental Clinics, Inc is considering becoming more specialized in cleanings and fillings What would be the company's revenues per year if the number of cleanings increased to 10.500 per year, the number of fillings increased to 2 100 per year, while the number of cappings dropped to zero? With this change in product mix, the company would increase its fixed costs to $560,000 per year. What would be the effect of this change in product mix on the clinic's earnings after taxes per year? d-2. If the clinic's managers seek to maximize the clinic's after-tax earnings, would this change be a good idea? Complete this question by entering your answers in the tabs below. ReqA Red B Reg Reg DI Reg D2 Painless Dental Clinics, Inc, is considering becoming more specialized in cleanings and fillings. What would be the company's revenues per year if the number of cleanings increased to 10,500 per year, the number of filings increased to 2,100 per year while the number of cappings dropped to zero? With this change in product mix, the company would increase its fixed costs to $560,000 per year what would be the effect of this change in product mix on the clinic's earnings after taxes per year? Show less Earning Problem 3-69 (Algo) Extensions of the CVP Model-Multiple Products and Taxes (LO 3-4) price Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its prices and costs. Variable cost Units Sold per Unit per Unit Cleaning Filling Capping $ 340 620 1.475 $190 600 830 per Year 7,500 2,000 500 Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $510,000 per year include building and equipment costs, marketing costs, and the costs of administration Painless Dental Clinics is subject to a 20 percent tax rate on income A cleaning "unit" is a routine teeth cleaning that takes about 45 minutes. A filling unit is the work done to fill one or more cavities in one session. A capping "unit" is the work done to put a crown on one tooth. If more than one tooth is crowned in a session, then the clinic counts one unit per tooth (e.g. putting crowns on two teeth counts as two units) Required: o. Given this information how much will Painless Dental Clinics, Inc., earn each year after taxes? b. Assuming the given sales mix is the same at the break-even point, at what sales revenue does Painless Dental Clinics, Inc., break even? C. Assuming the given sales mix, at what sales revenue will the company earn $162,000 per year after taxes? d-1. Painless Dental Clinics, Inc., is considering becoming more specialized in cleanings and filings. What would be the company's revenues per year if the number of cleanings increased to 10,500 per year, the number of fillings increased to 2100 per year, while the number of cappings dropped to zero? With this change in product mix, the company would increase its fixed costs to 5560,000 per year. What would be the effect of this change in product mix on the clinic's earnings after taxes per year? d-2. If the clinic's managers seek to maximize the clinic's after-tax earnings, would this change be a good idea? Complete this question by entering your answers in the tabs below. Reg A Reg B Reg. Reg Di Reg D2 If the clinic's managers seek to macimize the clinic's after-tax earnings, would this change be a good idea? Yes No