Pursuit Company produces two products: Bric and Brac. The following table summarizes the productsdetails and...

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Accounting

Pursuit Company produces two products: Bric and Brac. The following table summarizes the productsdetails and planned unit sales for the upcoming period: Bric : Selling price per unit........... $25.Variable cost per unit ..........$14. Planned unit sales volume ......800,000 Brac: Selling price per unit........... $30Variable cost per unit ..........$17. Planned unit sales volume ......400,000
Pursuit Company has total fixed costs of $10million and faces a tax rate of 30%.
(a)What is Pursuit Companys expected profit at the planned level of sales? (b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even?
(c)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earn an after-tax income of $910,000?

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