Ng Corporation produces and sells only one product; its selling price is $100 and its variable cost

Question:

Ng Corporation produces and sells only one product; its selling price is $100 and its variable cost is $80 per unit. The company’s monthly fixed expense is $20,000.

Required:

1. Using the equation method, solve for the unit sales that are required to earn a target profit before taxes of $3,000.

2. Using the formula method, solve for the dollar sales that are required to earn a target profit before taxes of $4,000.

3. Using the formula method, calculate the number of units that need to be sold to earn an after-tax income of $6,000, assuming a tax rate of 25%.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...