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University Of West Georgia Operations And Supply Chain Management Assignment Help - Intermediate Accounting


Question - Odd W allow Drinks is considering adding a new line of fruit juices to its merchandise products. This
line of juices has the following prices and costs:

Selling price per case (24 bottles) of juice $ 50
Variable cost per case (24 bottles) of juice $ 24
Fixed costs per year associated with this product $ 8,150,000
Income tax rate 40 %


Required:
(a) Compute Odd Wallow Drinks's break-even point in units per year. (Round up your answer to
the nearest whole unit.)


(b) How many cases must Odd Wallow Drinks sell to earn $1,800,000 per year after taxes on the
juice?(Round up your answer to the nearest whole number.)

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