Reference no: EM132528593

Mountain Maples is a mail-order nursery dedicated to growing, selling, and shipping beautiful Japanese maple trees. They offer two types: Butterfly and Moonfire. They are sold after 5 growing seasons and revneue and cost data are as follows:

                                Units Sold           Selling Price per Unit              Variable cost per unit

Butterfly                  600                       $300                              $150

Moonfire                 400                           $400                             $300

Fixed costs were $78,000.

Question 1. How many Japanese maples must Mountain Maples sell in a year to break even? At this sales volume, how many Butterfly and Moonfire trees are sold?

Question 2. At the current product mix, how many Butterfly trees must they sell in a year to earn an after tax profit of $23,400, assuming the tax rate is 40%?