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Delaware manufacturing company sells two products , product A and product B Product A Product B Total Selling price $40 $50 ? Variable cost per unit $24 $40 ? Total Fixed Cost ? ? $840,000 Delaware manufacturing sells two units of the product A for each unit it sells of product B. Delaware Manufacturing faces a tax rate of 30%. Required a) What is the breakeven point in units for each product assuming the sales mix is 2 units of the product A for each unit of product B?
b) What is the breakeven point if Delaware Manufacturing’s tax rate is reduced to 25%, assuming the sales mix is 2 units of product A for each unit of product B?
c) How many units of each product would be sold if Delaware Manufacturing desired an after tax net income of $ 73,500, Facing a tax rate of 30%
Assuming all of the containers produced by the bottle Division can be sold to outside companies, which of the following is the range at which a negotiated transfer price among the two divisions should occur?
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Hazel Holden and Cedric Dalton are organizing Calgary Metals Unlimited Inc. to undertake a high-risk gold-mining venture in Canada. Discuss whether Hazel and Cedric are behaving in a professional manner.
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