Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. parker company produces and sells two products: a

Parker Company produces and sells two products: A and B in the ratio of 3A...

90.2K

Verified Solution

Question

Accounting

Parker Company produces and sells two products: A and B in the ratio of 3A to 5B. Selling prices for A and B are, respectively, $1,200 and $240; respective variable costs are $480 and $160. The company's fixed costs are $1,800,000 per year. Compute the volume of sales in units of each product needed to:

Required:

a. break even

b. earn $800,000 of income before income taxes.

c. earn $800,000 of income after income taxes, assuming a 30 percent tax rate.

d. earn 12 percent on sales revenue in before-tax income.

e. earn 12 percent on sales revenue in after-tax income, assuming a 30 percent tax rate.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Use unit rates to determine the better buy and provide the unit price for your...

Basic Math
1.2K views

Illustrate Approaches that develop students’ imagery and visualization skills. (Illustrate means to draw or include pictures to...

Medical Sciences
1.2K views

please answer 1 & 2 thanks! 1) HR and BP responses to submaximal exercise. For this,...

Advance Math
1.2K views

Let Q1=y(2) Q2 =y(3) where y=y(x) solves y'+2xy=2x^3     y(0)=1 dy/dx= (2x-y)/(x+4y)     y(1)=1 y'+ycotx=y^3sin^3x      y(pi/2)=1 (y^2-2x)dx+2xy dy=0    y(1)=1 2x^2y;+4xy=3sinx    y(2pi)=0 y"+2y^-1 (y')^2=y'

Physics
1.2K views

4 6 A circular current loop of magnetic moment M is in an arbitrary orientation...

Basic Math
1.2K views

You may need to use the appropriate appendix table or technology to answer this question...

Calculus
1.2K views

Problem 1 Let f x 4x 2 and g x x 2 a Find the...

Accounting
1.2K views

Help me 1) Which of the following is true about payment systems as bank-owned...

Accounting
1.2K views

Chapter 16 Statement of Cash Flows >> ow EE 16-2 OBJ. 2 SPE 16-2A Adjustments...

Accounting
1.2K views

On September 27, Guess receives payment in cash from Nordstrom for its order. (Answer from...

Finance
1.2K views

Which two portfolios lie on the same indifference curve?

Finance
1.2K views

10. Based on Table No. 1, below the expected forecast for the following years year...