Solution-Compute odd wallow drinks break-even point in units

Compute odd wallow drinks break-even point in units

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Reference no: EM132856773

Question - Odd Wallow Drinks is considering adding a new line of fruit juices to its merchandise products. This line of juices has the following prices and costs.

Selling price per case (24 bottles) of juice $75

Variable cost per case (24 bottles) of juice $36

Fixed costs per year associated with this product $12,168,000

Income tax rate 40%

Required -

a. Compute Odd Wallow Drinks' break-even point in units per year.

b. How many cases must Odd Wallow Drinks sell to earn $1,872,000 per year after taxes on the juice?

Reference no: EM132856773

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Compute odd wallow drinks break-even point in units

Reference no: EM132856773

Reference no: EM132856773

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