# Budgeted data is given below product sales price

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Budgeted data is given below: Product Sales Price Variable cost Per Unit Sales Mix as a Proportion of Total Sales

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Dollars A B C \$30 20 40 \$15 12 30 .10 .50 .40 Budgeted total fixed costs are \$700,000. Required: a. Calculate the break-even point in sales dollars for each product based on the budgeted sales mix. b. Determine the sales dollars of each product needed to generate a budgeted after tax profit of \$245,000. Assume a 50% tax rate. c. Determine the sales dollars of each product needed to generate a 15% budgeted return on sales dollars after taxes. PROBLEM 11-6 The Tampa Company produces two types of exercise machines, Pumpup (X1) and Treadmill (X2). Relevant data are as follows: Product Contribution Margin Per Unit Budgeted Sales Mix in Units X1 X2 \$100 200 60% 40% The company’s total fixed costs amount to \$350,000 which represents \$200,000 fixed manufacturing overhead and \$150,000 fixed selling and administrative expenses. Required: a. Determine the number of units of each product the company needs to produce and sell to break-even. b. Determine the number of units of each product needed to generate net income after taxes equal to \$96,250. Assume a tax rate of 45%. The St. Pete Company produces two types of tape rulers, a 25 foot (A1) and a 50 foot (A2). Prices, costs and mix ratios are as follows: Product Sales Price Variable Cost Per Unit Budgeted Sales Mix in Dollars A1 A2 \$10 4 \$6.50 2.80 20% 80% Total fixed costs amount to \$62,000 and the tax rate is 45%.
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