Question
Bartlett Company is considering a new product, Pear. Bartlett's fixed costs are $200,000. Pear's contribution margin is $200 per unit. Bartlett has a marginal tax
Bartlett Company is considering a new product, Pear. Bartlett's fixed costs are $200,000. Pear's contribution margin is $200 per unit. Bartlett has a marginal tax rate of 30%. How many units of Pear would Bartlett have to sell to have after-tax net income of $560,000?
A.7,667 units
B.5,000 units
C.4,750 units
D.None of the other three answers is correct.
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Survey Of Economics, Principles, Applications, And Tools
Authors: Arthur O'Sullivan, Steven M. Sheffrin, Stephen J. Perez
5th Edition
0132556073, 978-0132556071
