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Stewart Company The following information relates to financial projections of Stewart Company: Projected sales 60,000 units Projected variable costs $3.00 per unit Projected fixed costs
Stewart Company The following information relates to financial projections of Stewart Company: Projected sales 60,000 units Projected variable costs $3.00 per unit Projected fixed costs $40,000 per year Projected unit sales price $7.00 If Stewart Company's tax rate is 40%, how many units would Stewart Company need to sell (target income volume) to earn an after-tax profit of $6,000?
Choose the closest answer.
A. | 12,950 | |
B. | 13,877 | |
C. | 12,500 | |
D. | 13,333 |
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