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Home Q & A Board Other Fields Homework Help Business Accounting
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jerico jerico
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9 years ago
Mount Carmel Company sells only two products, Product A and Product B.

   Product A   Product B   Total
Selling price   $40   $50   
Variable cost per unit   $24   $40   
Total fixed costs         $840,000

Mount Carmel sells two units of Product A for each unit it sells of Product B. Mount Carmel faces a tax rate of 30%.

Required:
a.   What is the breakeven point in units for each product assuming the sales mix is 2 units of Product A for each unit of Product B?
b.   What is the breakeven point if Mount Carmel's tax rate is reduced to 25%, assuming the sales mix is 2 units of Product A for each unit of Product B?
c.   How many units of each product would be sold if Mount Carmel desired an after-tax net income of $73,500, facing a tax rate of 30%?
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
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cyborgcyborg
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9 years ago
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jerico Author
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#2
9 years ago
Thank you for the help. I took this course as an elective, glad it's over in three weeks. Great textbook though!
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#3
9 years ago
Sweet, you're welcome.
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