Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 12 Aug 2017 My Price 11.00

Odd Wallow Drinks

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 $ 50  
Variable cost per case (24 bottles) of juice $ 24  
Fixed costs per year associated with this product $ 8,150,000  
Income tax rate   40 %

 

Required:
(a)

Compute Odd Wallow Drinks's break-even point in units per year. (Round up your answer to the nearest whole unit.)

 

 

 

(b)

How many cases must Odd Wallow Drinks sell to earn $1,800,000 per year after taxes on the juice?(Round up your answer to the nearest whole number.)

 

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Aug 2017 01:08 AM My Price 11.00

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