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Required

a. Determine the number of pairs of each product that Converse must sell to obtain an after-tax profit

of $50,000.

b. Determine the number of pairs of each product Converse must sell to obtain identical before-tax

profit.

c. For the solution to requirement (b), calculate Converse's after-tax profit or loss.

d. Which product should Converse produce if both products were guaranteed to sell at least 18,000

pairs? Verify your solution with calculations.

e. How much would the variable costs per pair of the product not selected in requirement (d) have to

fall before both products provide the same profit at sales of 18,000 pairs? Verify your solution with

calculations.

Fig: 1