(CVP, taxes) Helen Smith has a small plant that makes playhouses. She sells them to local customers at $3,000 each. Her costs are as follows:

Helen is in a 35 percent tax bracket.

a. How many playhouses must she sell to earn $247,507 after taxes?

b. What level of revenue is needed to yield an after-tax income equal to 20 percent of sales?LO1

Transcribed Image Text:

Direct material COSTS PER UNIT TOTAL Direct labor Variable overhead Variable selling Fixed production overhead Fixed general, selling, and administrative $1,200 400 150 50 $200,000 80,420