How many bundles must be sold to obtain an after tax profit

Assignment Help Managerial Accounting
Reference no: EM132052555

XYZ Company sells 2 products, Product A and Product B. Historically, XYZ Company has found that for every 2 Product A's that are sold, they sell 1 Product B (3 total products, 2 A and 1 B). Information on XYZ Company is as follows:

Product A  Product B

Sales Price    $1,000   $750

Costs:

   Direct Materials   $100   $50

   Direct Labor    $125   $75

   Variable OH    $70   $100

   Commissions   $25   $25

Fixed Costs per Year:

Fixed Overhead:    $250,000

Fixed Administrative Costs:   $300,000

Tax Rate:     25%

Calculate, in units, how many bundles must be sold to obtain an after tax profit of $300,000. Please show all the steps.

Reference no: EM132052555

Questions Cloud

Prepare the journal entry to record the accumulation : a. Prepare the journal entry to record the accumulation of raw materials costs for the month.
Calculate the measures of center and variation : Inferential Statistics and Analytics - What are the measures of center - What are the measures of variation and why are they important
Analyze effects of global disaster on financial statements : Analyze the effects of the global disaster on the financial statements of your chosen company using the financial information from your company
What should they charge customers per widget : Assuming that ABC expects to produce and sell 2,000 widgets during the year, what should they charge customers per widget?
How many bundles must be sold to obtain an after tax profit : Calculate, in units, how many bundles must be sold to obtain an after tax profit of $300,000. Please show all the steps.
What is the current bond value : A company just issued 10-year bonds at a coupon rate of 6%. Coupons are annually paid. If YTM on these bonds is 6.3%, what is the current bond value
Events that they have serviced : Coopers Ltd has a Chain of operations of $22,500,000 of revenue from 5,000 events that they have serviced.
What is the amount of owners equity : The total liabilities of the company are $690,000. What is the amount of owners' equity?
What amount of net income : Astoria Co. had the following transactions during the month of August 2014:

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Do you have any concerns about lending the company money

Do you have any concerns about lending the company money?

  Activity based costing in business

I am having to explain and provide detailed example of where activity base costing would be employed. I'm capable to describe ABC in length but can't come up with detailed example.

  Show the integrity issues

Do you think that you should face the same integrity issues that an outside auditor faces with respect to conflicts of interest? Why, or why not?

  Prepare a schedule of operating cash flows using

Prepare a schedule of operating cash flows using the indirect method.

  Describe how the process-costing system accumulates

Describe how the process-costing system accumulates and assigns costs by comparing and contrasting it to the job-order costing system

  Company using the direct method

Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the direct method.

  Determine the full product costs and selling prices

Using WGCC's current product-costing system: Determine the full product costs and selling prices of one pound of Kona coffee and one pound of Malaysian coffee.

  Prepare a budgeted income statement

Prepare a budgeted income statement for each of the above three alternative plans and identify the plan that has the most beneficial effect on Flexs

  Determine what the optimal level of output is for the firm

Determine what the optimal level of output is for the firm and the firm's profit if fixed costs are expected to be $4.0 million.

  Managerial accounting-doubtful accounts

Under what method does the balance in allowance for doubtful accounts have no bearing on the journal adjusting journal entry?

  Tajiri corporation uses customers served as its measure

Tajiri Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of May:

  Prepare the cash flows from operating activities section

The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Macro Soft Corporation.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd