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CVP; taxes Hamlet House makes portable garden sheds that sell for $ 1 , 8 0 0 each. The tax rate for the company is

CVP; taxes
Hamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is 35 percent. Costs are as follows:
Per Unit Total
Direct material $800
Direct labor 90
Variable production overhead 60
Variable selling and administrative cost 50
Fixed production overhead $440,000
Fixed selling and administrative 132,000
a. If Hamlet House wants to earn an after-tax profit of $400,400, how many garden sheds must be sold? Answer
2,097
garden sheds
b. How many garden sheds must be sold to yield an after-tax profit of 8 percent of revenue?
Note: Do not round until your final answer.
Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units).
Answer
5,486
garden sheds
c. How much revenue is generated from selling units calculated in part (b)? $Answer
9,874,800

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