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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Consider the continuous uniform distribution. a. Why would you use this to model the distribution of...

Basic Math
Q

ou are part owner in a small, reputable, and profitable office supply distributor. After 3 years,...

General Management
Q

Independent Practice Part 1 7 5 y x 3 40 impli D M HA 6...

Geometry
Q

5 K 96 0 O 105 106 80 S F 168 96 6 W A...

Basic Math
Q

Use PMT T OA 2 726 OB 3 076 OC 2 456 OD 2 576...

Basic Math
Q

6 1 point Scalene Triangle 1 point B If the measure of angle A is...

Algebra
Q

Which of the following statements about the statement of cash flows is not correct? ...

Accounting
Q

Apply DuPont Disaggregation of ROE Selected balance sheet and income statement information for...

Accounting
Q

Capital Leases Implications

Accounting
Q

At the beginning of the year, Blossom Company had total assets of 871,000 and total...

Accounting
Q

Complete this question by entering your answers in tl Which option for the office building...

Accounting
Q

If factory overhead is overapplied for the period, would you expect the total of the...

Accounting