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Pursuit Company produces two products: Bric and Brac. The following table summarizes the products details and planned unit sales for the upcoming period: Bric :

Pursuit Company produces two products: Bric and Brac. The following table summarizes the products details and planned unit sales for the upcoming period: Bric : Sellingpriceperunit........... $25. Variablecostperunit .......... $14. Planned unit sales volume ......800,000 Brac: Sellingpriceperunit........... $30 Variablecostperunit .......... $17. Planned unit sales volume ......400,000
Pursuit Company has total fixed costs of $10 million and faces a tax rate of 30%.
(a)What is Pursuit Companys expected profit at the planned level of sales? (b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit
Company to break even?
(c) Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit
Company to earn an after-tax income of $910,000?

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