Preston Products produces a disinfecting liquid. The liquid is sold in one gallon containers and has the
Question:
Preston Products produces a disinfecting liquid. The liquid is sold in one gallon containers and has the following price and cost characteristics.
Preston Products is subject to an income tax rate of 21 percent.
Required
a. How many gallons must Preston Products sell every month to break even?
b. How many gallons must Preston Products sell to earn a monthly operating profit of $75,840 after taxes?
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