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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vikram Bhai
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
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