hello, 

i need help on these questions please

1.

Multiple Product Break-Even Analysis
Presented is information for Stafford Company's three products.

 

 

With monthly fixed costs of $306,000, the company sells two units of A for each unit of B and three units of B for each unit of C.

Determine the unit sales of product A at the monthly break-even point.

2. 

Sweet Grove Citrus Company buys a variety of citrus fruit from growers and then processes the fruit into a product line of fresh fruit, juices, and fruit flavorings. The most recent year's sales revenue was $4,200,000. Variable costs were 60 percent of sales and fixed costs totaled $1,500,000. Sweet Grove is evaluating two alternatives designed to enhance profitability. 

• One staff member has proposed that Sweet Grove purchase more automated processing equipment. This strategy would increase fixed costs by $400,000 but decrease variable costs to 54 percent of sales.
• Another staff member has suggested that Sweet Grove rely more on outsourcing for fruit processing. This would reduce fixed costs by $400,000 but increase variable costs to 65 percent of sales.
• (a) Assuming an income tax rate of 37 percent, what dollar sales volume is currently required to obtain an after-tax profit of $300,000?
• b) In the absence of income taxes, at what sales volume will both alternatives (automation and outsourcing) 
• provide the same profit?