Homework Help is Here – Start Your Trial Now!
Business
Accounting
Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 26,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 20,000 and 24,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models. The following information was compiled by the accounting department. Selling price per unit Variable costs per unit Model Mountaineering $143.00 84.70 Touring $131.00 84.70 Fixed costs will total $598,400 if the mountaineering model is produced but will be only $508,200 if the touring model is produced. Alpine Thrills Ski Company is subject to a 50 percent income tax rate. Problem 7-51 Part 2 2. If Alpine Thrills Ski Company desires an after-tax net income of $38,620, how many pairs of touring skis will the company have to sell? (Do not round intermediate calculations. Round your final answer to the nearest whole unit.) Number of pairs to be sold units

Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 26,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 20,000 and 24,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models. The following information was compiled by the accounting department. Selling price per unit Variable costs per unit Model Mountaineering $143.00 84.70 Touring $131.00 84.70 Fixed costs will total $598,400 if the mountaineering model is produced but will be only $508,200 if the touring model is produced. Alpine Thrills Ski Company is subject to a 50 percent income tax rate. Problem 7-51 Part 2 2. If Alpine Thrills Ski Company desires an after-tax net income of $38,620, how many pairs of touring skis will the company have to sell? (Do not round intermediate calculations. Round your final answer to the nearest whole unit.) Number of pairs to be sold units

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Vikram Bhai 

Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 26,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 20,000 and 24,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models. The following information was compiled by the accounting department. Selling price per unit Variable costs per unit Model Mountaineering $143.00 84.70 Touring $131.00 84.70 Fixed costs will total $598,400 if the mountaineering model is produced but will be only $508,200 if the touring model is produced. Alpine Thrills Ski Company is subject to a 50 percent income tax rate. Problem 7-51 Part 2 2. If Alpine Thrills Ski Company desires an after-tax net income of $38,620, how many pairs of touring skis will the company have to sell? (Do not round intermediate calculations. Round your final answer to the nearest whole unit.) Number of pairs to be sold units
Transcribed Image Text:Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 26,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 20,000 and 24,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models. The following information was compiled by the accounting department. Selling price per unit Variable costs per unit Model Mountaineering $143.00 84.70 Touring $131.00 84.70 Fixed costs will total $598,400 if the mountaineering model is produced but will be only $508,200 if the touring model is produced. Alpine Thrills Ski Company is subject to a 50 percent income tax rate. Problem 7-51 Part 2 2. If Alpine Thrills Ski Company desires an after-tax net income of $38,620, how many pairs of touring skis will the company have to sell? (Do not round intermediate calculations. Round your final answer to the nearest whole unit.) Number of pairs to be sold units
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS