Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Mountain Top Boot Company plans to expand its manufacturing capacity to allow up to 20,000 pairs of a new product each year. Because only one product can be produced, management is deciding between the production of the Sure Foot for backpacking and the Trail Runner for exercising. A marketing analysis indicates mountain top could sell between 8,000 and 14,000 pairs of either product. The accounting department has developed the following price and cost information:

selling price per pair..............sure foot=$80.00 trail runner=$75.00
variable costs per pair...........sure foot=$50.00 trail runner=$50.00
product costs..........................sure foot=$130,000.00 trail runner=$50,000.00

Facility costs for expansion, regardless of product, are $150,000. Mountain Top is subject to a 40% income tax rate.

a. Determine the number of pairs of Sure Foot boots Mountain Top must sell to obtain an after tax profit of $30,000.

b. Determine the number of pairs of each product Mountain Top must sell to obtain identical before tax profit.

c. for the solution to requirement b, find out Mountain Top's after-tax profit or loss.

d. Which product should Mountain Top produce if both products were guaranteed to sell at least 13,000 pairs. Verify your solution with calculations.

e. how much would the variable costs per pair of the product NOT selected in requirement d have to fall before both products provide the same profit at sales of 13,000 pairs? Verify your solution with calculations.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M941509

Have any Question? 


Related Questions in Accounting Basics

In this assignment complete sections iii and iv of the

In this assignment, complete Sections III and IV of the project. For this part of the assessment prepare a Word document that addresses the critical elements below. Make sure answer each question in a substantive way and ...

The howard leasing company is a private held medium-size

The Howard Leasing Company is a private held, medium-size business that purchases school busses and leases them to school districts, curses, charitable organizations, and other businesses. to better serve its customers a ...

Fbl5030 fundamentals of value creation ion business

FBL5030 Fundamentals of Value Creation ion Business Assignment - Accounting Assignment Requirements- 1.  The following is a list of 10 organisations/companies, one of which will be the subject of your analysis. CODE      ...

Problem - cwt lawyers pty ltd started to operate in 2015 in

Problem - CWT Lawyers Pty Ltd started to operate in 2015 in Melbourne. CWT advises clients on legal issues relating to commercial contracts, ASIC compliance, Trade Practices and Corporations Act requirements, business st ...

Imagine that you are a tax consultant and must determine

Imagine that you are a tax consultant and must determine the most appropriate business structure for a small business entity. Compare and contrast S-Corporations, C-Corporations, and Partnerships in terms of tax conseque ...

Auditing assurance amp services individual assignment

Auditing Assurance & Services Individual Assignment Research Question - You work in a chartered accounting firm and your partner, Sally Smith, has asked you to do some research and write a report to update her about the ...

A are the amounts at which fixed assets are reported in the

A. Are the amounts at which fixed assets are reported in the balance sheet their approximate market values as of the balance sheet date? Discuss. B. (a) Under what conditions is the use of an accelerated depreciation met ...

Topic ethics in auditing practiceyour assignment should

Topic: "Ethics in auditing practice" Your assignment should answer the following questions: 1. Provide a brief overview of the nature of the auditing/ethical issue/s involved with Ethics in auditing practice. 2. How does ...

Pinciples of accounting5-6 pages body of paper only

Pinciples of Accounting 5-6 pages (Body of Paper only) Excluding title page and work cite You will select a company from this list, and you will analyze the company's financial performance, highlighting accounting princi ...

The assignment will require the group to undertake research

The assignment will require the group to undertake research using the website of the Australian Stock Exchange (ASX) and/or the Company whose industry is Food, Beverage & Tobacco that you have chosen. Elder Ltd is the ap ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate