Question
Units sold 12,000 Selling price $150 per unit Variable costs $90 per unit Total fixed costs $100,000 Tax rate 25% 12. How many units have
Units sold 12,000
Selling price $150 per unit
Variable costs $90 per unit
Total fixed costs $100,000
Tax rate 25%
12. How many units have to be sold in order to earn an aftertax net income of $60,000?
a. 3,500
b. 3,000
c. 2,500
d. 2,000
13. First: Prepare a contribution margin income statement based on the 12,000 units sold. Second: Using one of the short-cut tricks that you learned, assuming sales decreased by 25 percent, what would the new net income be?
| a. | $420,000 |
| b. | $430,000 |
| c. | $440,000 |
| d. | $450,000 |
14. First: Go back to the original data and use the contribution margin income statement based on the 12,000 units sold that you just prepared for Question #13. Second: Using the other short-cut trick that you learned, assuming the sales price decreased by 25 percent, what would the new net income be?
| a. | $160,000 |
| b. | $170,000 |
| c. | $180,000 d. $190,000 |
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Primary English Audit And Test
Authors: Sue Reid, Angela Sawyer, Mary Bennett-Hartley
4th Edition
1446282759, 978-1446282755
