Wren Company produces three products with the following characteristics Total fixed costs at Wren Company are $200,000

Question:

Wren Company produces three products with the following characteristics

Total fixed costs at Wren Company are $200,000 per year.

Required

(a) Assuming a constant sales mix, how many units of each of the three products must Wren Company sell in order to break even?

(b) Assuming a constant sales mix, if Wren Company faces a tax rate of 30% and has a target after-tax income of $50,000, how many units of each of the three products must Wren Company sell?

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Management Accounting Information For Decision Making

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7th Edition

Authors: Anthony A. Atkinson

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Wren Company produces three products with the following characteristics Total fixed costs at Wren Company are $200,000

Question:

Planned unit sales. Price per unit.... Variable cost per unit REGULAR 13,000 $13 $6 CUSTOM 10,000 $18 $9 DELUXE 8,000 $21 $15

Step by Step Answer:

a To calculate the breakeven point for Wren Company we need to find the total sales required to cove...View the full answer

Management Accounting Information For Decision Making

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