Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and

Question:

Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.’s tax rate is 36% and the company wants to earn $44,000 after taxes.

A. What would be Delta’s desired pre-tax income?

B. What would be break-even point in units to reach the income goal of $44,000 after taxes?

C. What would be break-even point in sales dollars to reach the income goal of $44,000 after taxes?

D. Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.

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Principles Of Accounting Volume 2 Managerial Accounting

ISBN: 9780357364802

1st Edition

Authors: OpenStax

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Question Posted: Jul 19, 2023 05:49 AM

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Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and

Question:

Step by Step Answer:

A To find Delta Cos desired pretax income we first need to calculate the income before taxes that would result in the desired aftertax income Desired ...View the full answer

Principles Of Accounting Volume 2 Managerial Accounting

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