Amazon Inc. sells only 2 products, X and Y. She sells 3 units of product X...
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Amazon Inc. sells only 2 products, X and Y. She sells 3 units of product X for each 2 units of product Y. Amazon's tax rate is 25%. Additional information for Amazon is as follows: Product Y Total Product X $50 $90 $70 $40 Selling price Variable cost per unit Total fixed costs Required: $700,000 1) Calculate the breakeven point in units and sales dollars for each product. (8 points) 2) Calculate the number of units that would have to be sold to make an after-tax income of $210,000, assuming Amazon's tax rate is 25%. (5 points) 3) The manager of product X has the opportunity to sell an additional 10,000 units as a one-time special order. Variable costs per unit will increase to $46 and an additional delivery run will be made at a cost of $10,000. Should Amazon make this sale? (5 points) Choose a file to upload. (Maximum file size: 20MB) File: Choose File no file selected Upload Amazon Inc. sells only 2 products, X and Y. She sells 3 units of product X for each 2 units of product Y. Amazon's tax rate is 25%. Additional information for Amazon is as follows: Product Y Total Product X $50 $90 $70 $40 Selling price Variable cost per unit Total fixed costs Required: $700,000 1) Calculate the breakeven point in units and sales dollars for each product. (8 points) 2) Calculate the number of units that would have to be sold to make an after-tax income of $210,000, assuming Amazon's tax rate is 25%. (5 points) 3) The manager of product X has the opportunity to sell an additional 10,000 units as a one-time special order. Variable costs per unit will increase to $46 and an additional delivery run will be made at a cost of $10,000. Should Amazon make this sale? (5 points) Choose a file to upload. (Maximum file size: 20MB) File: Choose File no file selected Upload
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Id be happy to help you with these calculations Lets start with the first question 1 Breakeven point ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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