Question
X Company has the following information for its three products in 2016: Unit Sales 31,100 7,300 19,200 57,600 Product A Product B Product C
X Company has the following information for its three products in 2016: Unit Sales 31,100 7,300 19,200 57,600 Product A Product B Product C Total Contribution Margin $5.70 $11.20 $9.50 $26.40 Fixed costs in 2016 were $311,000. 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 $124,000 after taxes? Assume a tax rate of 39%.
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
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