Carter Manufacturing Company manufactures exclusive pens which sell for $60 per unit. Its unit variable costs are
Question:
Carter Manufacturing Company manufactures exclusive pens which sell for $60 per unit. Its unit variable costs are $28 and fixed expenses are $384,000. The company pays income tax at the rate of 30%.
Required:
1. How many units must Carter sell to earn an after-tax income of $22,400?
2. Re-compute the sales level to earn the above-mentioned after-tax income if the tax rate changes to 40%.
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Step by Step Answer:
1 Sales Variable expenses Fixed expenses Target profits 60Q 28Q 384000 32000 ...View the full answer
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Related Book For 
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
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