Question
Reliable Supply Company sells only two products, Product A and Product B. Product A Product B Total Selling price $35 $58 Variable cost per unit
Reliable Supply Company sells only two products, Product A and Product B.
|
| Product A | Product B | Total |
| Selling price | $35 | $58 |
|
| Variable cost per unit | $27 | $42 |
|
| Total fixed costs |
|
| $395,000 |
Reliable Supply sells 4 units of Product A for each 3 units it sells of Product B. Reliable Supply has a tax rate of 20%.
Required:
a. What is the breakeven point in units for each product, assuming the sales mix is 4 units of Product A for each 3 units of Product B?
b. How many units of each product would be sold if Reliable Supply desired an after-tax net income of $380,000, using its tax rate of 20%?
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Water Audits And Loss Control Programs
Authors: American Water Works Association
4th Edition
1625761007, 978-1625761002
