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 $$250,000$

Annual fixed selling and administrative $120,000$

Golf Glider$$s income is taxed at a $40$ percent rate.

a$.$ How many golf carts must Golf Glider sell to earn $$600,000$ after tax? Answer

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 $45\mathrm{.}5555\%$ to $45\mathrm{.}56\%).$

Note: Round your final answer to the nearest whole dollar.

$Answer