Operating information for four different products sold by Kline Company follows: Common fixed costs are $270,000 and

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Operating information for four different products sold by Kline Company follows:

Product A 1,000 Product D 100 Product B Product C 300 Units sold Sales Variable product costs Identifiable fixed product

Common fixed costs are $270,000 and the income tax rate is 35%.
1. Determine the revenues that Kline must achieve to break even.
2. Determine the number of units of each product that Kline must sell to break even, assuming the sales mix remains constant.
3. Determine the sales revenue needed to earn an after-tax profit of $1,625,000.
4. Determine the number of units of each product that must be sold for Kline to achieve an after-tax profit of $1,300,000.

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Cornerstones of Managerial Accounting

ISBN: 978-0176530884

2nd Canadian edition

Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman

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