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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?
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