Wren Company produces three products with the following characteristics: regular custom deluxe planned unit sales 13,000...
Wren Company produces three products with the following characteristics:
| regular | custom | deluxe | |
| planned unit sales | 13,000 | 10,000 | 8,000 |
| price per unit | $13 | $18 | $21 |
| variable cost per unit | $6 | $9 | $15 |
Total fixed costs at Wren Company are $200,000 per year.
(a) Assuming a constant sales mix, how many units of each of the three products must Wren
Company sell in order to break even?
(b) Assuming a constant sales mix, if Wren Company faces a tax rate of 30% and has a target
after-tax income of $50,000, how many units of each of the three products must Wren Com-
pany sell?
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Wren Company produces three products with the following
characteristics:
regular
custom
deluxe
planned unit sales
13,000...
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