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A company has signed a contract that requires them to produce and sell calculators for $10 per units. A recent study of costs indicated that
A company has signed a contract that requires them to produce and sell calculators for $10 per units. A recent study of costs indicated that their fixed selling and administrative costs were $100,000 and $40,000 respectively. Variable production costs were discovered to be $4 per unit, while their variable selling and administrative costs are $2 per unit. The company's tax rate is 30%.
What is the net income (after-tax income) for the company its sales were 60,000 units?
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