Question: Assuming the given sales mix is the same at the break-even point, at what sales revenue does Elliott Trophies break even? Elliott Trophies makes three
Assuming the given sales mix is the same at the break-even point, at what sales revenue does Elliott Trophies break even? Elliott Trophies makes three types of awards for organizations to give employees or team members. The following are its prices and costs: Price per Unit Variable Cost per Unit Units Sold per Year Sport $ 24 $ 16 36,000 Employee 80 60 9,000 Celebrity 656 516 3,000 Fixed costs of $441,000 per year include building and equipment costs, marketing costs, and the costs of administration. Elliott Trophies is subject to a 21 percent tax rate on income. Required: Given this information, how much will Elliott Trophies earn each year after taxes? Assuming the given sales mix is the same at the break-even point, at what sales revenue does Elliott Trophies break even? Assuming the given sales mix, at what sales revenue will the company earn $276,940 per year after taxes? Elliott Trophies is concerned about the future of the Celebrity trophy market, given recent cost-cutting by companies and is considering becoming more specialized in the Sport and Employee market. If Elliott Trophies drops the Celebrity model, fixed costs will fall to $411,000 per year. If it follows through
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