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$75 Variable cost per case (24 bottles) of juice$36 Fixed costs per year associated with this product$12,168,000 Income tax rate 40% Required: a. Compute Odd Wallow Drinks' break-even point in units per year. b. How many cases must Odd Wallow Drinks sell to earn $1,872,000 per year after taxes on the juice

Question

14-02-2020
Mathematics

contestada

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$75 Variable cost per case (24 bottles) of juice$36 Fixed costs per year associated with this product$12,168,000 Income tax rate 40% Required: a. Compute Odd Wallow Drinks' break-even point in units per year. b. How many cases must Odd Wallow Drinks sell to earn $1,872,000 per year after taxes on the juice

Respuesta :

Otras preguntas

There are 36 cans of green beans and 48 cans of corn. The display designer wants an equal number of each vegetable in each row. What is the greatest number of c

what is the best distinction between birds and other animalsA.)Birds have amnitoe eggs B.)Bird have feathers C.)Birds eat seedsD.)Birds can fly

What other subjects are closely related to the visual arts and why? (Typing answer)

What is 66% as a fraction and decimal?

Which of the following represent a linear inequality in open-sentence form? (Select all that apply.) 2x - 7y > 10, 3 < 5, 2x + 8 = 10y, 8 + x > 5

Zoe's pizza cost $12.99. She gave a tip of $2.00. What percent did Zoe leave as a tip? A 9% B 13% C 15% D 19%

45 POINTS FOR 5 EARTH SCIENCE QUESTIONS!!!!!!!!!!!!!

Are volcanoes often found where two plates meet?

Find the sum. Write the sum as a mixed number, so the fractional part is less than 1.

reactant → product If there are 4 grams of reactant, how many grams of product are produced by the chemical reaction? A) 0 grams Reactivate B) 2 g

aishatoluwaloju aishatoluwaloju · Answer 1 · 2020-02-15T20:35:06+01:00

Answer:A. 312,000 units

B. 392,000 units

Step-by-step explanation:

This is Cost Volume Profit Analysis question, breakeven point is the point where the company is neither making a profit nor a loss.

From the attachment, the formula for Breakeven point in units is Total Fixed cost / Contribution per unit(CPU)

Contribution per unit(CPU) is computed as Selling price per unit - Variable cost per unit $75-$36=$39

A. Total fixed cost = $12,168,000

CPU = $39

$12,168,000 / $39 = 312,000 units.

B. The first thing to find is the Profit before tax. To get profit before tax we convert our profit after tax(PAT) back using the tax rate given. Formula is PBT/ (1-tax rate)

The formula to find the units= TFC+PBT / CPU

Tax rate-40%

PAT- $1,872,000

PBT=$1,872,000 / (1-0.4) = $3,120,000

No of units at a targeted PAT= $12,168,000+$3,120,000 / $39 = 392,000 units