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StormLrd StormLrd
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6 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%. Mount Carmel desires a net after-tax income of $73,500. The number of units needed to be sold to achieve the desired after-tax profit would be
A) 21,750 units of Product A and 43,500 units of Product B.
B) 22,500 units of Product A and 22,500 units of product B.
C) 43,500 units of Product A and 21,750 units of Product B.
D) 45,000 units of Product A and 22,500 units of Product B.
E) 64,616 units of Product A and 32,308 units of Product B.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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MunihasenMunihasen
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6 years ago
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