Use the information for Hamlet House in Exercise E9-15 and assume a tax rate for the company of 35 percent.

a. If Hamlet House wants to earn an after-tax profit of \(\$ 182,000\), how many garden sheds must be sold?

b. How much revenue is needed to yield an after-tax profit of 8 percent of revenue? How many garden sheds does this revenue amount represent?

Data From Exercise E9-15:-

Hamlet House makes portable garden sheds that sell for \(\$ 1,800\) each. Costs are as follows:

a. How many garden sheds must the company sell to break even?
b. If Hamlet House's management wants to earn a pre-tax profit of \(\$ 200,000\), how many garden sheds must be sold?
c. If Hamlet House's management wants to earn a pre-tax profit of \(\$ 280,000\), how many garden sheds must be sold?

Transcribed Image Text:

Direct material Direct labor..... Variable production overhead.. Variable selling and administrative cost.. Fixed production overhead..... Fixed selling and administrative. Per Unit Total $800 90 60 50 $200,000 60,000