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Waterway Company, which is subject to a 40% income tax rate, projected its income before taxes for next year as shown here: Sales (200,000 units)
Waterway Company, which is subject to a 40% income tax rate, projected its income before taxes for next year as shown here: Sales (200,000 units) $10,000,000 Cost of sales Variable costs 2,500,000 Fixed costs 3,750,000 Pretax earning $3,750,000 What is Waterway's breakeven point in units sold for the next year? Breakeven point units If Waterway wants $5,625,000 in pretax earning, what is the required level of sales, in dollars? Total Revenue If Waterway's net assets are $45,000,000, what amount of revenue must be achieved for Waterway to earn a 10% after- tax return on assets? Total Revenue $ If Waterway wants after-tax earnings of 30% of sales, what is the required level of sales in dollars and in units? Revenue: or units
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