Question
Please show full work and get the right answer please. Thanks in advance. Motto, Inc manufactures and sells scooters. A projected income statement for the
Please show full work and get the right answer please. Thanks in advance.
Motto, Inc manufactures and sells scooters. A projected income statement for the expected sales volume of 100,000 scooters is as follows:
Sales $7,500,000
Variable Expenses $3,000,000
Contribution Margin $4,500,000
Fixed Expenses $2,500,000
Before-tax profit $2,000,000
a.) How many scooters need to be sold to have a before-tax profit of 2,900,000?
b.)What dollar sales volume would be required to achieve $3,500,000 of before-tax profit?
Answer is not $10,000,000
c.) Now assume that moto, Inc is subjected to a 40% tax. How many scooters must it sell to achieve an after-tax income of $1,500,000?
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