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

Question

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

Quizplus · Accepted Answer

The Answer of Atlanta Radio Supply sells only two products, Product X and Product Y.
  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%?

Atlanta Radio Supply Sells Only Two Products, Product X and Product