Atlanta Radio Supply sells only two products,Product X and Product Y.
$$\begin{array} { | l | c | c | c | }
\hline & \text { Product } X & \text { Product } Y & \text { Total } \
\hline \text { Selling price } & \$ 25 & \$ 45 & \
\hline \text { Variable cost per unit } & \$ 20 & \$ 35 & \
\hline \text { Total fixed costs } & & & \$ 350,000 \
\hline
\end{array}$$ 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.
 $$\begin{array} { | l | c | c | c | } 
\hline & \text { Product } X & \text { Product } Y & \text { Total } \
\hline \text { Selling price } & \$ 25 & \$ 45 & \
\hline \text { Variable cost per unit } & \$ 20 & \$ 35 & \
\hline \text { Total fixed costs } & & & \$ 350,000 \
\hline
\end{array}$$ 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.
 $$\begin{array} { | l | c | c | c | } 
\hline & \text { Product } X & \text { Product } Y & \text { Total } \
\hline \text { Selling price } & \$ 25 & \$ 45 & \
\hline \text { Variable cost per unit } & \$ 20 & \$ 35 & \
\hline \text { Total fixed costs } & & & \$ 350,000 \
\hline
\end{array}$$ 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