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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?
$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
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