Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lin Corporation has a single product whose selling price is $120 and whose variable expense is $80 per unit. The companys monthly fixed expense is

Lin Corporation has a single product whose selling price is $120 and whose variable expense is $80 per unit. The companys monthly fixed expense is $50,000.

If Lin has a target profit of $10,000 per month, what are the monthly sales revenues needed to achieve this target?

Suppose Lin faces a tax rate of 40% and wants to achieve the target profit of $10,000 after taxes. What are the monthly sales revenues needed to achieve this target? Round your answer to the nearest dollar.

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

Step: 3

blur-text-image

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

Information Technology Auditing

Authors: James A. Hall

4th edition

1133949886, 978-1305445154, 1305445155, 978-1133949886

More Books

Students also viewed these Accounting questions