Apollo Companys sales manager predicts that annual sales of the companys product will soon reach 40,000 units

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Apollo Company’s sales manager predicts that annual sales of the company’s product will soon reach 40,000 units and its price will increase to $200 per unit. According to the production manager, the variable costs are expected to increase to $140 per unit but fixed costs will remain at $630,000. The income tax rate is 20%. What amounts of pretax and after-tax income can the company expect to earn from these predicted changes?

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Fundamental Accounting Principles

ISBN: 978-0078110870

20th Edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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