A firm makes and sells three standard products in a specific product mix. All three products are made using the same production facilities. The following budgeted data for the coming year is available.
Total annual fixed costs $348 000
Tax rate 40%
What sales revenue would be required for each of the three products to earn a profit of $139 200 after tax?

Question

A firm makes and sells three standard products in a specific product mix. All three products are made using the same production facilities. The following budgeted data for the coming year is available. 
Total annual fixed costs $348 000
Tax rate 40%
What sales revenue would be required for each of the three products to earn a profit of $139 200 after tax?

Quizplus · Accepted Answer

The Answer of A firm makes and sells three standard products in a specific product mix. All three products are made using the same production facilities. The following budgeted data for the coming year is available. 
Total annual fixed costs $348 000
Tax rate 40%
What sales revenue would be required for each of the three products to earn a profit of $139 200 after tax?

A Firm Makes and Sells Three Standard Products in a Specific