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QUESTION 4 10 marks Centenary Ceramics Pty Ltd produces two types of garden planter pots: terracotta pots and glazed ceramic pots. During the year ended

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QUESTION 4 10 marks Centenary Ceramics Pty Ltd produces two types of garden planter pots: terracotta pots and glazed ceramic pots. During the year ended 30 June 2019 Centenary Ceramics sold the planter pots in the proportion of three terracotta pots for every two glazed ceramic pots sold. The terracotta pots are high-quality and sell for $120 each and the variable costs per pot are $80. The glazed ceramic pots sell for $110 each and the variable costs per pot are $55. The fixed costs for Centenary Ceramics are $432 400 per year. Required: a) Calculate the break-even point in total units and the number of units of each type of pot that must be sold. b) How many terracotta pots and how many glazed ceramic pots must the firm sell to achieve an after-tax profit of $579 600 if the tax rate is 30%? I a) Contribution Margin - Terracotta Contribution Margin-Glazed - Weighted average contribution margin: WACM Break-even point in total units Units of Terracotta b) How many terracotta pots and how many glazed ceramic pots must the firm sell to achieve an after-tax profit of $579 600 if the tax rate is 30%? a) Contribution Margin - Terracotta Contribution Margin-Glazed Weighted average contribution margin: WACM Break-even point in total units Units of Terracotta Units of Glazed (b) Profit before tax Break even + Target profit I Units of Terracotta Units of Glazed

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