Lewis Products, Inc., desires to earn an after-tax income of $150,000. It has fixed costs of $1,000,000,

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Lewis Products, Inc., desires to earn an after-tax income of $150,000. It has fixed costs of $1,000,000, a unit sales price of $500, and unit variable costs of $200. The company is in the 30% tax bracket.

1. How many dollars of sales revenue must be earned to achieve the after-tax profit of $150,000?

2. How many dollars of revenue would have to be earned to achieve the $150,000 of profit, if there had been no income tax?


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Principles Of Cost Accounting

ISBN: 9780840037039

15th Edition

Authors: Edward J. Vanderbeck

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