The Yum-E Sandwich Company produces and sells three products with the following actual results for XXXX:...

  

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The Yum-E Sandwich Company produces and sells three products with the following actual results for XXXX: Per Unit: Sales (Units) Sales Direct Material Direct Labour Variable Overhead Fixed Overhead Production Cost Product Profit Other Costs: Peanut 40,000 $ 8.00 2.00 1.00 0.50 3.00 6.50 1.50 Butter 5,000 $ 30.00 6.00 4.00 2.00 6.00 18.00 12.00 Sales commissions = 5% of sales Sales salaries= $40,000 (fixed) Administrative salaries= $30,000 (fixed) Income taxes = 40% of operating income Jam 20,000 $ 20.00 5.00 3.00 1.50 4.00 13.50 6.50 Required: How many units of each product line would the company have to sell if they wished to change the sales mix to 30,000 units of Peanut, 10,000 units of Butter, and 20,000 units of Jam, and earn a net income after taxes of $78,000? (Round to 2 decimal places). The Yum-E Sandwich Company produces and sells three products with the following actual results for XXXX: Per Unit: Sales (Units) Sales Direct Material Direct Labour Variable Overhead Fixed Overhead Production Cost Product Profit Other Costs: Peanut 40,000 $ 8.00 2.00 1.00 0.50 3.00 6.50 1.50 Butter 5,000 $ 30.00 6.00 4.00 2.00 6.00 18.00 12.00 Sales commissions = 5% of sales Sales salaries= $40,000 (fixed) Administrative salaries= $30,000 (fixed) Income taxes = 40% of operating income Jam 20,000 $ 20.00 5.00 3.00 1.50 4.00 13.50 6.50 Required: How many units of each product line would the company have to sell if they wished to change the sales mix to 30,000 units of Peanut, 10,000 units of Butter, and 20,000 units of Jam, and earn a net income after taxes of $78,000? (Round to 2 decimal places).

Answer rating: 100% (QA)

To determine how many units of each product line the company would have to sell to achieve the desired sales mix and earn a net income after taxes of ... View the full answer