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:
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).

Question

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:
  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).

Quizplus · Accepted Answer

The Answer of 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:
  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).