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Carter Company sells a product for $100 per unit. The variable cost is $40 per unit, while fixed costs are $300,000. Additionally, the income tax
Carter Company sells a product for $100 per unit. The variable cost is $40 per unit, while fixed costs are $300,000. Additionally, the income tax rate is 40 percent.
Required:
- Calculate the contribution margin ratio (round your answer to xx.x %).
- Calculate the break-even point in sales units.
- Calculate the break-even point in sales dollars or revenues.
- How many units need to be sold to generate a pretax income of $180,000?
- Recalculate the break-even point in sales units if the selling price increased to $120 per unit. Round your answer to the nearest whole number.
- Calculate the after-tax net income assuming that 6,000 units are sold.
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