AFL Boots Sells Only Two Products,Product X and Product Y

question 196

Essay

AFL Boots sells only two products,Product X and Product Y.
$\begin{array}{|l|c|c|c|} \hline& \text { Product } X & \text { Product } Y & \text { Total } \\\hline \text { Selling price } & \$ 25 & \$ 45 & \\\hline \text { Variable cost per unit } & \$ 20 & \$ 35 & \\\hline \text { Total fixed costs } & & & \$ 350000 \\\hline\end{array}$
AFL Boots sells three units of Product X for each two units it sells of Product Y.The company has a tax rate of 25%.
Required:
a.What is the break-even point in units for each product,assuming the sales mix is 3 units of Product X for each two units of Product Y?
b.How many units of each product would be sold if AFL Boots desired an after-tax net profit of $210 000,using its tax rate of 25%?
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Definitions:

Sequential Values

A series of numbers or items arranged in a specific, consecutive order.

Named Range

A feature in spreadsheet software that allows a user to assign a descriptive name to a cell or range of cells for easy reference.

Predefined Procedure

A set of pre-established instructions or rules within a program or system meant to carry out specific tasks.

Function

In programming and software, a defined block of code designed to perform a specific task or calculation when called.