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Light Ltd. produces lighting fixtures. For the upcoming period, the company has provided the following budget information for two of its product lines: Product A Product B Sales (units) 120,000 400,000 Sales $6,000,000 $48,000,000 Variable costs 2,400,000 38,000,000 Contribution margin $3,600,000 $10,000,000 Less: fixed costs 2,398,000 6,200,000 Operating profit (loss) $1,202,000 $ 3,800,000 If Light wishes to achieve a total net (after-tax) income of $7,000,000 and has a tax rate of 30%, how many units of Product B must it sell if the sales mix remains unchanged? a) 400,000 b) 547,000 c) 623,920 d) 743,920

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M92046514

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