Question
X Company has the following information for its three products in 2016: Unit Sales Contribution Margin Product A 58,700 $3.70 Product B 7,700 $6.80 Product
X Company has the following information for its three products in 2016:
Unit Sales Contribution Margin
Product A 58,700 $3.70
Product B 7,700 $6.80
Product C 19,600 $12.20
Total 86,000 $22.70
Fixed costs in 2016 were $309,000. Assuming the 2016 unit sales mix and fixed costs do not change in 2017, what must total unit sales be in 2017 for X Company to earn $135,000 after taxes? Assume a tax rate of 32%.
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
470571439, 470571438, 9781118364123 , 978-0470571439
