Solved: Crest industries sells a single model of satellite radio, Accounting Basics

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Crest industries sells a single model of satellite radio

Question - 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 $ 82 per radio

Variable costs $ 33 per radio

Fixed costs $ 347,900 per month

Crest is subject to an income tax rate of 40 percent.

How many receivers must Crest sell to earn a monthly operating profit of $85,260 after taxes?

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Accounting Basics: Crest industries sells a single model of satellite radio

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