From the data given compute the sales price for each product T and O. From the data given compute variable cost per unit for each product T and O. Letter Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 50,000 units of each product. Sales and costs for each product follow.
From the data given compute the sales price for each product T and O. From the data given compute variable cost per unit for each product T and O. Letter Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 50,000 units of each product. Sales and costs for each product follow.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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From the data given compute the sales price for each product T and O.
From the data given compute variable cost per unit for each product T and O.
Letter Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 50,000 units of each product. Sales and costs for each product follow.
Transcribed Image Text:Product T Product O
Sales....
$800,000
$800,000
Variable costs...
560,000
100,000
Contribution margin
240,000
700,000
Fixed costs...
100,000
560,000
Income before taxes
140,000
140,000
Income taxes (32% rate)
44,800
44,800
Net income
$ 95,200
$ 95,200
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