Compute odd wallow drinkss breakeven point in units per year

Reference no: EM131931766

Problem

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 $ 84
Variable cost per case (24 bottles) of juice $ 44
Fixed costs per year associated with this product $ 12,560,000
Income tax rate 40 %

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

b. How many cases must Odd Wallow Drinks sell to earn $1,884,000 per year after taxes on the juice?

Reference no: EM131931766

Questions Cloud

What are the two distinct types of health insurance payment : According to Weisbrod (1991), what are the two distinct types of health insurance payment mechanisms and how?

Compute the after-tax rate of return for the dyce truck : The Ogi Corporation, a construction company, purchased a used pickup truck for $22,000 and used MACRS. Compute the after-tax rate of return for the Dyce truck.

Calculate the best order quantity and reorder point : Assume that demand variability follows a Poisson distribution and that the desired service level is 98% probability of not stocking out.

How should she and her company address the possible problems : Given the fact that each of its stores has only a handful of em- ployees, is her company covered by equal rights legislation?

Compute odd wallow drinkss breakeven point in units per year : dd Wallow Drinks is considering adding a new line of fruit juices to its merchandise products. Compute Odd Wallow Drinks's break-even point in units per year.

Are the actions by the company legal : Union Busting Plastico Corporation hears through the "grapevine" that its employees are unhappy with the working conditions and wages being paid.

What do those observations suggest as effective ways your : What do those observations suggest as effective ways your company could avoid such misjudgments and thereby achieve more mutually acceptable.

What is the materials price variance for december : Oddo Corporation makes a product with the standard costs: Standard Quantity or Hours Standard Price. What is the materials price variance for December?

What is amount of periodic annual after-tax net cash-flow : What is the amount of periodic annual after-tax net cash-flow from the use of this new machine? Is the purchase of this machine acceptable based on its NPV?

User Account

All Pages