Question
the Robinson Lawn Chair Company produces and sells a single high-priced lawn chair and in fiscal 1999 the company produced and sold 45,000 units. The
the Robinson Lawn Chair Company produces and sells a single high-priced lawn chair and in fiscal 1999 the company produced and sold 45,000 units. The 1999 income statement of the company reported the following:
Robinson Lawn Chair Company Income Statement For Fiscal Year 1999
| Total $s | Per Unit | |
| Sales | 1,800,000 | 40 |
| Variable Costs | 1,350,000 | 30 |
| Contribution Margin | 450,000 | 10 |
| Fixed Costs | 240,000 | 5.333333 |
| Income before Taxes | 210,000 | 4.666667 |
| Tax Expense | 63,000 | 1.4 |
| Income After Taxes | 147,000 | 3.266667 |
Compute the sales level required in units to achieve a level of profits before taxes of $270,000
| a. | 51,000 units
| |
| b. | 68,000 units
| |
| c. | 17,000 units | |
| d. | 34,000 units
|
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