How many receivers must crest sell to earn a monthly, Ask an Expert

Accounting

Crest Industries sells a single model of satellite radio receivers for use in the home. The radios have the following price and cost characteristics:

Sales price $80 per radio
Variable cost $32 per radio
Fixed cost $360,000 per month
Crest is subject to an income tax rate of 40 percent.

Required: SHOW ALL STEPS:

a. How many receivers must Crest sell every month to break even?

b. How many receivers must Crest sell to earn a monthly operating profit of $90,000 after taxes?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M964448

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