Harvest Growers, Inc. owns 4 types of apple orchards: Granny, Red Delicious, Fiji, and Golden Delicious. Some orchards are larger than others and therefore produce more apples, but proportions of total apple production tends to remain relatively constant. Harvest Growers recorded the following data from this month's sales:
Granny: 80 bushels, selling price $50 / bushel
Red Delicious: 60 bushels, selling price $60 / bushel
Fuji: 40 bushels, selling price $40 / bushel
Golden Delicious: 120 bushels, selling price $70 / bushel
Each bushel incurs the same variable costs, regardless of apple type. This month's total costs were $11,000. Total production last month was 250 bushels, and total costs were $10,000. The applicable tax rate is 25%.
If Harvest Growers desires that after-tax net income increase by 15% next month, how many bushels of Fuji apples does Harvest Growers need to sell? (Use the high-low method to calculate the cost equation. For intermediate and final calculations, round per-unit amounts to the nearest cent and the number of units up to the next whole unit).
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q132: What assumption must be made regarding selling
Q133: What assumption must be made regarding fixed
Q134: What is the break-even formula, expressed in
Q135: What is the equation for the break-even
Q136: What is the equation for the break-even
Q137: What is the formula for determining a
Q138: How might management determine (at a given
Q139: TechMed Co. manufactures a device that measures
Q140: SwiftyShop is a gas station that sells
Q141: CompuSweep is a computer maintenance company that
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents