Golf Glider makes gasoline-powered golf carts. The selling price is $5,000 each, and costs are asfollows: Golf

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Golf Glider makes gasoline-powered golf carts. The selling price is $5,000 each, and costs are asfollows:

Golf Gliders income is taxed at a 40 percent rate.
a. How many golf carts must Golf Glider sell to earn $600,000 after tax?
b. What level of revenue is needed to yield an after-tax income equal to 20 percent of sales?

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Cost Accounting Foundations and Evolutions

ISBN: 978-1111626822

8th Edition

Authors: Michael R. Kinney, Cecily A. Raiborn

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Question Posted: Jul 24, 2012 03:15 AM

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Golf Glider makes gasoline-powered golf carts. The selling price is $5,000 each, and costs are asfollows: Golf

Question:

Per Unit Total Cost Direct material Direct labor Variable overhead Variable selling Annual fixed production overhead Annual fixed selling and administrative $2,000 625 325 50 $250,000 120,000

Step by Step Answer:

a First convert the desired aftertax income to a pretax desired income 600000 ...View the full answer

Cost Accounting Foundations and Evolutions

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