Ambert Apparel makes lightweight jackets. Each jacket sells for $17.50. The variable cost per jacket is $11.00.
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Ambert Apparel makes lightweight jackets. Each jacket sells for $17.50. The variable cost per jacket is $11.00. The fixed costs are $175,000. The after-tax target profit level is $25,000.
Ambert Apparel is subject to a 30% income tax rate.
A. To achieve the profit goal, what must the before-tax profit be?
B. How many units must be sold to achieve the profit goal after taxes?
Related Book For
Introduction to Managerial Accounting
ISBN: 978-0073527079
5th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
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