Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please solve both problems (7 AND 8) with correct answers. incorrect answers are still shown. CVP; taxes Hamlet House makes portable garden sheds that sell
please solve both problems (7 AND 8) with correct answers. incorrect answers are still shown.
CVP; taxes Hamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is 35 percent. Costs are as follows: a. If Hamlet House wants to earn an after-tax profit of $364,000, how many garden sheds must be sold? x garden sheds b. How many garden sheds must be sold to yield an after-tax profit of 8 percent of revenue? Note: Do not round until your final answer. Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units). x garden sheds c. How much revenue is generated from selling units calculated in part (b)? \$ Austin Automotive sells an auto accessory for $180 per unit. The company's variable cost per unit is $30 for direct material, $25 per unit for direct labor, and $17 per unit for overhead. Annual fixed production overhead is $97,240, and fixed selling and administrative overhead is $65,624. Assume a tax rate company of 30 percent. a. If Austin Automotive wants to earn an after-tax profit of $353,080, how many units must the company sell? Note: Do not round until your final answer. Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units). x units b. If Austin Automotive wants to earn an after-tax profit of $7.20 on each unit sold, how many units must the company sell. Note: Do not round until your final answer. Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units). x unitsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started