Crest Industries sells a single model of satellite radio receivers for use in the home. The radios
Question:
Sales price . . . . . . . . . . . $ 80 per radio
Variable costs . . . . . . . . . $ 32 per radio
Fixed costs . . . . . . . . . . . $360,000 per month
Crest is subject to an income tax rate of 40 percent.
Required
a. How many receivers must Crest sell every month to break even?
b. How many receivers must Crest sell to earn a monthly operating profit of $90,000 after taxes?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Question Posted: