Question: Problem 4 - 4 1 . Multi - Product Operation, Break - Even Sales, Target Operating information for four different products sold by Kline Company

Problem 4-41. Multi-Product Operation, Break-Even Sales, Target
Operating information for four different products sold by Kline Company follows:
\table[[,\table[[Product],[A]],Product B,Product C,Product D],[Units sold,1,000,600,300,100],[Sales,$500,000,$1,080,000,$2,760,000,$3,600,000],[Variable product costs,300,000,630,000,1,650,000,2,350,000],[\table[[Identifiable fixed product],[costs]],25,000,220,000,300,000,300,000],[\table[[Variable],[selling/administrative]],25,000,150,000,240,000,213,000],[\table[[Identifiable fixed],[selling/administrative]],64,200,50,000,50,000,150,000]]
Common fixed costs are $270,000 and the income tax rate is 35 percent.
Required:
Note: Round all dollar values to the nearest dollar.
Determine the revenues that Kline must achieve to break even.
Determine the number of units of each product that Kline must sell to break even, assuming the sales mix remains constant.
Determine the sales revenue needed to earn an after-tax profit of $1,625,000.
Determine the number of units of each product that must be sold for Kline to achieve an after-tax profit of $1,300,000.
 Problem 4-41. Multi-Product Operation, Break-Even Sales, Target Operating information for four

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!