# Odd Wallow Drinks is considering adding a new line of fruit juices to its merchandise products. This line of juices has the following prices and costs:Selling price per case (24 bottles) of juice . . . . . . . . $ 50Variable cost per case (24 bottles) of juice . . . . . . . $ 24Fixed costs

Chapter 3, Review Questions #43

Odd Wallow Drinks is considering adding a new line of fruit juices to its merchandise products. This line of juices has the following prices and costs:

Selling price per case (24 bottles) of juice . . . . . . . . $ 50

Variable cost per case (24 bottles) of juice . . . . . . . $ 24

Fixed costs per year associated with

this product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,112,000

Income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40%

Required

a. Compute Odd Wallow Drinks’s break-even point in units per year.

b. How many cases must Odd Wallow Drinks sell to earn $1,872,000 per year after taxes on the juice?

Selling price per case (24 bottles) of juice . . . . . . . . $ 50

Variable cost per case (24 bottles) of juice . . . . . . . $ 24

Fixed costs per year associated with

this product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,112,000

Income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40%

Required

a. Compute Odd Wallow Drinks’s break-even point in units per year.

b. How many cases must Odd Wallow Drinks sell to earn $1,872,000 per year after taxes on the juice?

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## Fundamentals of Cost Accounting

3rd Edition

Authors: William Lanen, Shannon Anderson, Michael Maher

ISBN: 978-0077398194