Central Company manufactures a sensor used in various electronic devices. The products price and cost characteristics are

Question:

Central Company manufactures a sensor used in various electronic devices.
The product’s price and cost characteristics are as follows.

Selling price per unit ..................$ 13
Variable cost per unit .....................4
Fixed cost per year ..............540,000


Required
The company must sell 100,000 units annually in order to earn $187,200 in profits after taxes. What is Central Company’s tax rate?

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Related Book For  answer-question

Fundamentals of Cost Accounting

ISBN: 978-1259969478

6th edition

Authors: William N. Lanen, Shannon Anderson, Michael W Maher

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