Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Brian O'Neil intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline carrier for
Brian O'Neil intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline carrier for $400 each. The airline intends to reimburse Brian for any unsold ticket packages. The round-trip tickets will be sold for $500 each. Brian has a tax rate of 30% on his business income.
What is the dollar amount of sales required for Brian to earn an after-tax profit of $7,000 if fixed costs are $10,000?
Question 11 options:
$100,000
$70,588
$17,000
$50,000
$85,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started