Difficult# Sales Volumes with After-Tax Profits

MGRACT-7PAGC4

Chester Industries sells three product lines. Data are as follows:

Product | Selling | Variable |
---|---|---|

Line |
Price |
Cost |

----- | ------- | ------- |

X | \$25 | \$20 |

Y | \$40 | \$25 |

Z | \$20 | \$10 |

It is estimated that 30% of total sales volume will be for Product X, 30% for Product Y, and 40% for Product Z. Fixed costs for the year are expected to be \$200,000. The budgeted after-tax profit is \$300,000 and the income tax rate is 40%.

How many units of each product line must be sold to earn the budgeted after-tax profit?