Pursuit Company produces two products: Bric and Brac. The following table summarizes the products’ details and planned unit sales for the upcoming period:

 

Pursuit Company has total fixed costs of $10 million and faces a tax rate of 30%. 

Required 

(a)What is Pursuit Company’s expected profit at the planned level of sales? 

(b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even? 

(c) Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earn an after-tax income of $910,000?

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Selling price per unit.... Variable cost per unit.... Planned unit sales volume.. BRIC $25 $14 800,000 BRAC $30 $17 400,000