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The statement of income for Dimmell Co. presented below represents the operating results for the fiscal year just ended. Dimmell had sales of 1,800?tons of product during the current year. The manufacturing capacity of Dimmell’s facilities is 3,000?tons of product.  Dimmell plans to market its product in a new territory. Dimmell estimates that an advertising and promotion program costing $61,500 annually would need to be undertaken for the next 2 or 3 years. In addition, a $25 per ton sales commission over and above the current commission to the sales force in the new territory would be required. How many tons would have to be sold in the new territory to maintain Dimmell’s current after-tax income of $94,500?A. 307.5 tons. B. 1,095.0 tons. C. 273.333 tons. D. 1,545.0 tons. |