Elliott Trophies makes three types of awards for organizations to give employees or team members. The following are its prices and costs: Sport Employee Celebrity Price per Variable Cost per Units Sold Unit per Year $ 24 80 656 Unit $ 16 516 36,000 9,000 3,000 Fixed costs of $439,000 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: a. Given this information, how much will Elliott Trophies earn each year after taxes? b. Assuming the given sales mix is the same at the break-even point, at what sales revenue does Elliott Trophles break even? c. Assuming the given sales mix, at what sales revenue will the company earn $276,940 per year after taxes?
Elliott Trophies makes three types of awards for organizations to give employees or team members. The following are its prices and costs: Sport Employee Celebrity Price per Variable Cost per Units Sold Unit per Year $ 24 80 656 Unit $ 16 516 36,000 9,000 3,000 Fixed costs of $439,000 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: a. Given this information, how much will Elliott Trophies earn each year after taxes? b. Assuming the given sales mix is the same at the break-even point, at what sales revenue does Elliott Trophles break even? c. Assuming the given sales mix, at what sales revenue will the company earn $276,940 per year after taxes?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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