Problems LO3 pr-28. Profit Planning with Taxes Carron Net Company manufactures sports nets for virtually every outdoor sport. Assume Carron sells nets for $50 on average, per unit. Last year, the company manufactured and sold 30.000 nets to obtain an after-tax profit of $275,000. Variable and fixed costs follow. Carron Net Company Variable Costs per Unit Manufacturing... Selling and administrative Total Fixed Costs per Year $20 Manufacturing. 4 Selling and administrative. $24 Total $232,250 204,000 $436,250 Required a. Determine the tax rate the company paid last year h. What unit sales volume is required to provide an after-tax profit of $400,000? c. If the company reduces the unit variable cost by $4 and increases fixed manufacturing costs by $53,000, what unit sales volume is required to provide an after-tax profit of $400,000? d. What assumptions are made about taxable income and tax rates in requirements (a) through (e)? P16-29. Contribution Income Statement, Cost-Volume-Profit Graph, and Taxes Inil and Sail: Alcatraz Tour and Cruise provides sunset sightseeing tours of Alcatraz and the San Francisco Bay. Tickets cost $140 each. Assume 2.200 customers were served in July, LO2, 3 Jall and Sail: Alcatraz Tour and Cruise Module T6 CosVolume Pratt 131 $50,000 12.500 Fixed Costs per month Variable Costs per Customer Admission fees $60 Operations Overhead 25 Selling and administration Hors d'oeuvres. 15 Selling and administrative 2 Total $102 Total $62,500 Jail and Sail is subject to an income tax rate of 21%. Required a Prepare a contribution income statement for July b. Determine Jail and Sail's monthly break-even point in units. c. Determine Jail and Sail's margin of safety in units for July. d. Determine the unit sales required for a monthly after-tax profit of $20,000. e. Prepare a cost-volume-profit graph. Label the horizontal axis in units with a maximum value of 4,000. Label the vertical in dollars with a maximum value of $600,000. Draw a vertical line on the graph for the current (2,200) unit level and label total variable costs, total fixed costs, and total before-tax profits at 2,200 units