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CVP; taxes Golf Glider makes gasoline-powered golf carts. The selling price is $5,000 each, and costs are as follows: Cost Per Unit Total Direct material
CVP; taxes Golf Glider makes gasoline-powered golf carts. The selling price is $5,000 each, and costs are as follows: Cost Per Unit Total Direct material $2,000 Direct labor 625 Variable overhead 325 Variable selling 50 Annual fixed production overhead $350,000 Annual fixed selling and administrative 168,000 Golf Glider's income is taxed at a 40 percent rate. a. How many golf carts must Golf Glider sell to earn $840,000 after tax? 959 golf carts b. What level of revenue is needed to yield an after-tax income equal to 20 percent of sales? Note: In your calculations, round the desired before-tax percentage of sales to two decimal places (for example, round 45.5555% to 45.56%). Note: Round your final answer to the nearest whole dollar. $ 7,770,000 X
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