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Profit Planning with Taxes Carron Net Company manufactures sports nets for virtually every outdoor sport. Assume Carron sells nets for $50, on average, per
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 33,000 nets to obtain an after-tax profit of $302,500. Variable and fixed costs follow. Variable Costs per Unit Manufacturing Fixed Costs per Year $20 Manufacturing $255,475 Selling and administrative 4 Selling and administrative 224,400 Total $24 Total $479,875 Required a. Determine the tax rate the company paid last year. 0 96 b. What unit sales volume is required to provide an after-tax profit of $440,000? Note: Round your answer up to the nearest whole unit (for example, round 41.2 to 42). 0 units c. If the company reduces the unit variable cost by $4 and increases fixed manufacturing costs by $58,300, what unit sales volume is required to provide an after-tax profit of $440,000? Note: Round your answer up to the nearest whole unit (for example, round 41.2 to 42). 0 units d. What assumptions are made about taxable income and tax rates in requirements (a) through (c)? 1. Tax rate is constant. 2. Taxable income is less than accounting income. 3. Taxable income equals accounting income. Please answer all parts of the question. Assumption?
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