What sales revenue per month does the company break even

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Reference no: EM132466628

Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs.

Selling Variable

 Fixed Cost

Price   Cost

per Month

per Case per Case

 

Variety 1

$24

$20

-

Variety 2

25

23

-

Variety 3

30

21

-

Entire firm

-

-

$50,200

The sales mix (in cases) is 60 percent Variety 1, 25 percent Variety 2, and 15 percent Variety 3.

Required:

Question 1: a. At what sales revenue per month does the company break even?

Question 1: b. Suppose the company is subject to a 35 percent tax rate on income. At what sales revenue per month will the company earn $57,850 after taxes assuming the same sales mix?

Reference no: EM132466628

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