Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If Barnell brothers is subject to an effective income tax rate of 40%, how many units would Barnwell brothers have to sale to earn an

If Barnell brothers is subject to an effective income tax rate of 40%, how many units would Barnwell brothers have to sale to earn an after-tax profit of 90,000?
image text in transcribed
$500,000 Sales (100,000 units) Costs Fxed Variable Raw material s 0 $150,000 Direct labor SO $100,000 $75,000 $25,000 350,000 Factory costs $50,000 Selling and administrative costs $55,000 Total costs $105,000 $455,000 Operating income 45,000 In a 1-to 2-page document, address the following based on the provided company cost data What is the break-even sales in units? If Barnwell Brothers is subject to an effective income tax rate of 40%, how many units would Barnwell Brothers have to sell to earn an after-tax profit of $90,000 . If fixed costs increase $31,500 with no other cost or revenue factors changing, what is the break even sales in units? How would these calculations affect decision making for managers at Barnwell Brothers? Why? What recommendation(s) would you suggest for reducing costs at Barnwell Brothers? Justify your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Benefit Analysis With Reference To Environment And Ecology

Authors: James H. Meisel, K. Puttaswamaiah

1st Edition

1138521329, 978-1138521322

More Books

Students also viewed these Accounting questions

Question

consider how qualitative data can add value to your research;

Answered: 1 week ago

Question

consider the use of electronically obtained qualitative data;

Answered: 1 week ago