Kanata Company produces and sells a single product. The product is sold for $5 per unit, has
Question:
Kanata Company produces and sells a single product. The product is sold for $5 per unit, has a variable manufacturing cost of $3 per unit, and has a variable selling costs of 20% of selling price. Kanata Company produces 300,000 units per year and has fixed costs of $400,000 per year. The tax rate at Kanata Company is 30%.
Required
(a) How many units must Kanata Company sell to break even?
(b) How many units must Kanata Company sell to earn an after-tax income of $140,000?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Management Accounting Information For Decision Making
ISBN: 9781618533517
7th Edition
Authors: Anthony A. Atkinson
Question Posted: