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Sales (200,000 units @ 5 Each) 1,000,000 Variable cost 600,000 Contribution margin 400,000 Less Fixed cost 200,000 Profit before tax 200,000 Less tax 80,000 Profit
Sales (200,000 units @ 5 Each) 1,000,000 Variable cost 600,000 Contribution margin 400,000 Less Fixed cost 200,000 Profit before tax 200,000 Less tax 80,000 Profit after tax 120,000 Required Suppose the plant operated at full capacity after the expansion what profit will be earned after tax
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