Calculate the volume of sales in units


Snider company produces and sells two products: A & B in the ratio of 3A to 5B. Selling prices for for A & B are, respectively, $1200 & $240; respective variable costs are $480 & $160. The company's fixed costs are $1,800,000, per year. Compute the volume of sales in units of each product needed to:

a. breakeven

b. earn $800,000 of income before income taxes

c. earn $800,000 of income after income taxes, assuming a 30% tax rate

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Calculate the volume of sales in units
Reference No:- TGS050502

Expected delivery within 24 Hours