1. Ignore any current plans. Using last years actual data and sales mix, how many total cases would David need to sell in order to earn $50,000 after tax? How many of these cases would be Ocotillo Amber Pilsner?

Target Income = $ 50,000

Total Fixed Costs = $ 280,023.28 (given in Panel B of Exhibit 2)

Common fixed cost = $ 245,389.44

8% sales comission

Taxes 35%

Contribution margin per case :

$8.6

$11.67

$11.25

$10.91

Contribution Margin :

$108,299.80

$ 83,160.42

$ 576,803.75

$ 45,647.44

Total = 313,911.41