Profit Planning with Taxes Rebounder Company produces a rebounding net that can be used for soccer, baseball and lacrosse. The net sells for \($40\) per unit. Last year, the company manufactured and sold 20,000 nets to obtain an after-tax profit of \($54,000\). Variable and fixed costs follow.

Variable Costs per Unit

Required

a. Determine the tax rate the company paid last year.

b. What unit sales volume is required to provide an after-tax profit of $100,000?

c. If the company reduces the unit variable cost by \($3\) and increases fixed manufacturing costs by \($22,000\), what unit sales volume is required to provide an after-tax profit of $100,000?

d. What assumptions are made about taxable income and tax rates in requirements

(a) through (c)?

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Variable Costs per Unit Fixed Costs per Year Manufacturing $18 Manufacturing. Selling and administrative. 9 Selling and administrative Total $27 Total $ 80,000 30.000 $110,000