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Author Question: Atlanta Radio Supply sells only two products, Product X and Product Y. Product XProduct ... (Read 184 times)

lak

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Atlanta Radio Supply sells only two products, Product X and Product Y. 

Product XProduct YTotal
Selling price$25$45
Variable cost per unit$20$35
Total fixed costs$350,000
Atlanta Radio Supply sells three units of Product X for each two units it sells of Product Y. Atlanta Radio Supply has a tax rate of 25%.

Required:
a.What is the breakeven point in units for each product, assuming the sales mix is 3 units of 
Product X for each two units of Product Y?
b.How many units of each product would be sold if Atlanta Radio Supply desired an after-tax 
net income of $210,000, using its tax rate of 25%?


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Marked as best answer by lak on Mar 6, 2021

ghepp

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lak

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Reply 2 on: Mar 6, 2021
Excellent


ricroger

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Reply 3 on: Yesterday
Gracias!

 

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