What    is    the    breakeven    point    in    unit    sales    and    dollars    for    each    type    of    Bats    at    the    current    sales    mix?     B. What    is    the    breakeven    point    in    unit    sales    and    dollars    for    each    type    of    Bat at    the     current    sales    mix    if    the    tax    rate    is    40%? C. The     Accountant is     considering     buying     new     production     equipment.     The     new     equipment    will    increase    fixed    cost    by    twice    and    will    decrease the    variable    cost     by    50%.    Assuming    the    same    sales    mix,    how    many    of    each    type    of    bat does    Nadal need    to    sell    to    break    even?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A. What    is    the    breakeven    point    in    unit    sales    and    dollars    for    each    type    of    Bats    at    the   
current    sales    mix?    

B. What    is    the    breakeven    point    in    unit    sales    and    dollars    for    each    type    of    Bat at    the    
current    sales    mix    if    the    tax    rate    is    40%?

C. The     Accountant is     considering     buying     new     production     equipment.     The     new    
equipment    will    increase    fixed    cost    by    twice    and    will    decrease the    variable    cost    
by    50%.    Assuming    the    same    sales    mix,    how    many    of    each    type    of    bat does    Nadal
need    to    sell    to    break    even?    

Question:2
Abraham Products produces two types of Tennis Bats. One model is (Federer) and the
other one is Djokovic. Federer is sold for $280 and has variable costs of $100.
Djokovic sells for $300 and has variable costs of $200.
The Company sells four times more Federer models compared to Djokovic models.
Fixed costs equal $820,000.
Transcribed Image Text:Question:2 Abraham Products produces two types of Tennis Bats. One model is (Federer) and the other one is Djokovic. Federer is sold for $280 and has variable costs of $100. Djokovic sells for $300 and has variable costs of $200. The Company sells four times more Federer models compared to Djokovic models. Fixed costs equal $820,000.
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