question archive Hunter & Sons sells a single model of meat smoker for use in the home

Hunter & Sons sells a single model of meat smoker for use in the home

Subject:AccountingPrice: Bought3

Hunter & Sons sells a single model of meat smoker for use in the home. The smokers have the following price and cost characteristics. Sales price Variable costs Fixed costs 84 per smoker 33 per smoker 397,800 per month Hunter & Sons is subject to an income tax rate of 40 percent. Required: a. How many smokers must Hunter & Sons sell every month to break even? b. How many smokers must Hunter & Sons sell to earn a monthly operating profit of $76,500 after taxes? Break-even sales in units 7,800 b. Number of units to be sold

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