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Author Question: Mount Carmel Company sells only two products, Product A and Product B. Product AProduct ... (Read 136 times)

cdr_15

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Mount Carmel Company sells only two products, Product A and Product B. 

Product AProduct BTotal
Selling price$40$50
Variable cost per unit$24$40
Total fixed costs$840,000
Mount Carmel sells two units of Product A for each unit it sells of Product B. Mount Carmel faces a tax rate of 30%.

Required:
a.  What is the breakeven point in units for each product assuming the sales mix is 2 units of Product A for each unit of Product B?
b.  What is the breakeven point if Mount Carmel's tax rate is reduced to 25%, assuming the sales mix is 2 units of Product A for each unit of Product B?
c.  How many units of each product would be sold if Mount Carmel desired an after-tax net income of $73,500, facing a tax rate of 30%?


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Marked as best answer by cdr_15 on Mar 6, 2021

kristenb95

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cdr_15

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


JCABRERA33

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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