Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please explain answers! DGA Tile manufactures ceramic flooring tiles. DGA's annual fixed costs are $740,000. The variable cost of each tile is $0.25, and tiles

Please explain answers! image text in transcribed
DGA Tile manufactures ceramic flooring tiles. DGA's annual fixed costs are $740,000. The variable cost of each tile is $0.25, and tiles are sold for $6.50. DGA has a combined state and federal tax rate of 30 percent. Required: a) How many tiles does DGA need to make and sell each year to eam an after-tax profit of $85,000 ? b) DGA must pay 10 percent of before-tax profits as a royalty payment on its founder. Now how many tiles must DGA make and sell to generate $85,000 after taxes? (Assume the royalty payment is not a tax-deductible expenses.)

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

Blockchain Techonology In Accounting And Auditing

Authors: Prof Oleksandr Melnychenko

1st Edition

1976900328, 978-1976900327

More Books

Students also viewed these Accounting questions

Question

=+10. Is the source available to your organization?

Answered: 1 week ago

Question

What are the key parts of an RFP?

Answered: 1 week ago

Question

5. Identify three characteristics of the dialectical approach.

Answered: 1 week ago