The Sports Drink Company,a producer of specialty drinks,has asked you to complete several calculations based upon the following information:
$$\begin{array} { l r }
\text { Income tax rate } & 30 \% \
\text { Selling price per unit } & \$ 66.00 \
\text { Variable cost per unit } & \$ 52.80 \
\text { Total fixed costs } & \$ 462000.00
\end{array}$$
Required:
a.What is the break-even point in drinks?
b.What sales volume is needed to earn an after-tax net profit of $130 284?
c.How many drinks must be sold to earn an after-tax net profit of $184 800?
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Question

The Sports Drink Company,a producer of specialty drinks,has asked you to complete several calculations based upon the following information:
 $$\begin{array} { l r } 
\text { Income tax rate } & 30 \% \
\text { Selling price per unit } & \$ 66.00 \
\text { Variable cost per unit } & \$ 52.80 \
\text { Total fixed costs } & \$ 462000.00
\end{array}$$ 
Required:
a.What is the break-even point in drinks?
b.What sales volume is needed to earn an after-tax net profit of $130 284?
c.How many drinks must be sold to earn an after-tax net profit of $184 800?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Quizplus · Accepted Answer

The Answer of The Sports Drink Company,a producer of specialty drinks,has asked you to complete several calculations based upon the following information:
 $$\begin{array} { l r } 
\text { Income tax rate } & 30 \% \
\text { Selling price per unit } & \$ 66.00 \
\text { Variable cost per unit } & \$ 52.80 \
\text { Total fixed costs } & \$ 462000.00
\end{array}$$ 
Required:
a.What is the break-even point in drinks?
b.What sales volume is needed to earn an after-tax net profit of $130 284?
c.How many drinks must be sold to earn an after-tax net profit of $184 800?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

The Sports Drink Company,a Producer of Specialty Drinks,has Asked You