Problem 5-5A

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Compute the sales level required in both dollars and units to earn $140,000 of after-tax income in 2014 with the machine installed and no change in the sales price. Assume that the income tax rate is 30 %. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume an income tax rate of 30%. Vanna Co. produces and sells two products. T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs This year, the company sold 50,000 units of each product. Sales and costs for each product follow