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How many smokers must hunter - sons sell every month

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Reference no: EM133098708

Question - Hunter & Sons sells a single model of meat smoker for use in the home. The smokers have the following price and cost characteristics.

Sales price $85 per smoker

Variable costs 32 per smoker

Fixed costs 413,700 per month

Hunter & Sons is subject to an income tax rate of 40 percent.

Required -

1. How many smokers must Hunter & Sons sell every month to break even?

b. How many smokers must Hunter & Sons sell to earn a monthly operating profit of $79,500 after taxes?

Reference no: EM133098708

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