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Royal Aluminum desires an after-tax income of $500,000. It has Fixed costs of $2,500,000, a unit sale price of $300, and unit variable costs of
Royal Aluminum desires an after-tax income of $500,000. It has Fixed costs of $2,500,000, a unit sale price of $300, and unit variable costs of $150, and is in the 40% tax bracket.
1) What is the break-even point in units?
2) What is the break-even point in dollars?
3) How many units needed to earn $500,000 net operating income when no income tax existed?
4) What amount of pre-tax income is needed to earn an after-tax income of $500,000?
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