Question
Porter Corporation has fixed costs of $280,000, variable costs of $16 per unit, and a contribution margin ratio of 25 percent. (a) Find the break
Porter Corporation has fixed costs of $280,000, variable costs of $16 per unit, and a contribution margin ratio of 25 percent.
(a) Find the break even sales volume (in dollars) required for Porter Corporation. (b) Find the unit sales price for their product ($). (c) Find the unit contribution margin for their product ($). (d) Find the sales volume in units required for Porter Corporation to earn an operating income of $150,000. (e) If Porter is subject to a 40% overall income tax rate, how many units must Porter sell to earn an after-tax profit of $160,000?
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