r/Accounting•
kr1syyg

Managerial Accounting HW Help?

Having trouble on how to answer one question from my homework.

I am given information on a company that sells three types of drinks: A, B, and C. I am given the price per case of drink type, its direct material, direct labor and variable costs per case. Additional info given includes: number of cases per drink sold, the total sales made from each drink type and net income from the previous year.

The question asks me to use the previous year's actual data and sales mix to calculate how many cases the company would need to sell in order to earn $50,000 after tax assuming a 35% tax, and how much of these cases would be type C?

The whole question is quite long, so I tried to summarize it as best as I can. Could anyone guide me on how I should approach the question?!

THANKS IN ADVANCE!!

Posted Feb 17, 2017, 3:07 AM UTC

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