Question
Based on table below... How many units would thecompany need to sell to obtain a profit of $100,000? How many units would the company have
| Based on table below... How many units would thecompany need to sell to obtain a profit of $100,000? How many units would the company have to sell to obtain an after tax income of $120,000? Target income volume = (FC + target Income) / Unit CM = ($150,000 + $100,000) / $200 = ??? units Target income volume = (FC + [Target after tax income / (1 tax rate)] / Unit CM = ??? units ================================================================================================================= Total Sales (1,000 pairs of boots) |
========== $500,000 |
| Variable Costs | $300,000 |
| Fixed Costs | $150,000 |
| Tax Rate | 25% |
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
14th Edition
9780470587232, 470587288, 470587237, 978-0470587287
