chapter_3

# B how many cases must odd wallow drinks sell to earn

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Unformatted text preview: even point(s). b. If Cesar’s Bottlers can sell all the units it can produce, should it operate at one, two, or three shifts? Support your answer. 3-43. Extensions of the CVP Model—Taxes Odd Wallow Drinks is considering adding a new line of fruit juices to its merchandise products. This line of juices has the following prices and costs: Selling price per case (24 bottles) of juice . . . . . . . . \$ 50 Variable cost per case (24 bottles) of juice . . . . . . . \$ 24 Fixed costs per year associated with this product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$8,112,000 Income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40% CHAPTERS (L.O. 4) IN PART ONE Required 1 Making Yourself Successful in College a. Compute Odd Wallow Drinks’s break-even point in units per year. b. How many cases must Odd Wallow Drinks sell to earn \$1,872,000 per year after taxes on the 2 Approaching College Reading and juice? Developing a College-Level Vocabulary 3-44. Extensions of the CVP Model—Taxes (L.O. 4) Frightproof Commuter Airlines is considering adding a new ﬂight to its current schedule from Metro to Hicksville. This route has the following prices and costs: Approaching College Assignments: 3 S Reading Textbooks and Following Directions Selling price per passenger per ﬂight. . . . . . . . . . . . \$ 80 Variable cost per passenger per ﬂight . . . . . . . . . . . \$ 20 Fixed cost per ﬂight . . . . . . . . . . . . . . . . . . . . . . . . . \$2,400 Income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30% Required a. Compute Frightproof’s break-even point in number of passengers per ﬂight. b. How many passengers per ﬂight must Frightproof have to earn \$1,050 per ﬂight after taxes? c. Each aircraft has the capacity for 70 passengers per ﬂight. In view of this capacity limitation, can Frightproof carry enough passengers to break even? Can the company carry enough passengers to earn \$1,050 per ﬂight after taxes? 3-45. Extensions of the CVP Model—Taxes Lomas Electronics manufactures a portable testing device for use in oil exploration. The product’s price and cost characteristics are: cor50782_ch01_001-072.indd 1 lan27114_ch03_080-109.indd 103 Selling price per unit . . . . . . . . . . . Variable cost per unit . . . . . . . . . . . Fixed cost per year . . . . . . . . . . . . 130 70 420,000 ✓ Related Resources See pages 000 to 000 of the Annotated Instructor’s Edition for general suggestions related to the chapters in Part One. (L.O. 4) 1 \$ 10/5/09 11:09:29 PM 10/22/09 10:34:03 PM REVISED PAGES Part II 104 Cost Analysis and Estimation 1 Required P order The company must sell 10,000 units annually inA R toTearn \$117,000 in proﬁts after taxes. What is Lomas Electronics’s tax rate? (L.O. 4) 3-46. Extensions of the CVP Model—Taxes Action Games has developed a new computer game that it plans to sell for \$32. The variable costs associated with each game (for materials, shipping, and packaging) amount to \$7. The ﬁxed costs assoc...
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## This note was uploaded on 02/07/2014 for the course MIS 304 taught by Professor Mejias during the Spring '07 term at Arizona.

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