Light ltd produces lighting fixtures for the upcoming


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: Light ltd produces lighting fixtures for the upcoming
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