Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs. Fixed Cost per Month Selling Variable Price Cost

image text in transcribedimage text in transcribed

Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs. Fixed Cost per Month Selling Variable Price Cost per Case per Case $ 10 $ 8 B 6 9 Variety 1 Variety 2 Variety 3 Entire firm 13 $46,800 The sales mix (in cases) is 40 percent Variety 1, 35 percent Variety 2, and 25 percent Variety 3. Required: a. At what sales revenue per month does the company break even? b. Suppose the company is subject to a 35 percent tax rate on income. At what sales revenue per month will the company $43,485 after taxes assuming the same sales mix? Complete this question by entering your answers in the tabs below. Required A Required B At what sales revenue per month does the company break even? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.) Break-even revenue Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs. Fixed Cost per Month Variety 1 Variety 2 Variety 3 Entire firm Selling Variable Price Cost per Case per Case $ 10 $ 8 B 6 13 9 $46,800 The sales mix (in cases) is 40 percent Variety 1, 35 percent Variety 2, and 25 percent Variety 3. Required: a. At what sales revenue per month does the company break even? b. Suppose the company is subject to a 35 percent tax rate on income. At what sales revenue per month will the company earn $43,485 after taxes assuming the same sales mix? Complete this question by entering your answers in the tabs below. Required A Required B " .. . Suppose the company is subject to a 35 percent tax rate on income. At what sales revenue per month will the company earn $43,485 after taxes assuming the same sales mix? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.) ........ Sales revenue

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting For Managers

Authors: Eric Noreen, Peter Brewer, Ray Garrison

6th Edition

1264100590, 9781264100590

More Books

Students also viewed these Accounting questions