Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and

Question:

Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.’s tax rate is 36% and the company wants to earn $44,000 after taxes.

A. What would be Delta’s desired pre-tax income?

B. What would be break-even point in units to reach the income goal of $44,000 after taxes?

C. What would be break-even point in sales dollars to reach the income goal of $44,000 after taxes?

D. Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Principles Of Accounting Volume 2 Managerial Accounting

ISBN: 9780357364802

1st Edition

Authors: OpenStax

See More Books

Question Posted: Jul 19, 2023 05:49 AM

See More Questions

The Savannah Shirt Company makes two types of T-shirts: basic and custom. Basic shirts are plain shirts without any screen printing on them. Custom shirts are created using the basic shirts and then...
The Jacksonville Shirt Company makes two types of T-shirts: basic and custom. Basic shirts are plain shirts without any screen printing on them. Custom shirts are created using the basic shirts and...
1. ABM's breakeven point is 4,000 units at a sales price of P50 per unit, variable cost of P30 per unit, and total fixed costs of P80,000. If ABM sells 500 additional units, by how much will profit...
Q No. 1) a) Construct the Histogram for the following frequency distribution relating to the ages of telephone operators. Age (Years) No. of Operators 10-15 15-20 20-25 25-30 30--35 10 22 17 b)...
What is the difference between project and category-oriented budgets?
Given that x(t) = c 1 cos t + c 2 sin t is the general solution of x'' = 2 x = 0 on the interval (,), show that a solution satisfying the initial conditions x(0) = x 0 , x'(0) = x 1 is given by x(t)...
Draw a cash flow diagram of any investment that exhibits both of the following properties: 1. The investment has a 4-year life. 2. The investment has a 10 percent/year internal rate of return.
Extractor Company leased a machine on July 1, 2011, under a 10-year lease. The economic life of the machine is estimated to be 15 years. Title to the machine passes to Extractor Company at the...
1) (4 marks) Given the function f(x) = x a. Determine the average rate of change on the interval -5 x 2. b. Is it possible to determine the instantaneous rate of change at x = 2? Explain why or why...
Abilene Industries manufactures and sells three products (XX, YY, and ZZ). The sales price and unit variable cost for the three products are as follows: Their sales mix is reflected as a ratio of...
After conducting a CVP analysis, most businesses will then recreate a revised or projected income statement incorporating the results of the CVP analysis. What is the benefit of taking this extra...
In 2015, a firm has receipts of $8 million and expenses (excluding depreciation) of $4 million. Its depreciation for 2015 amounts to $2 million. If the effective income tax rate is 40%, what is this...
How do leaders navigate the complexities of team dynamics, including conflicts, power struggles, and role ambiguity, while promoting constructive dialogue, conflict resolution, and mutual...
Using scholarly resources which do you feel is the most limiting factor in generating innovations: the idea for an innovation, or the organizational processes to support innovation? Why? Do you think...
Briefly describe and analyze the relationship between emotional intelligence and conflict resolution strategies within high-stress work settings?
What are the implications of cross-cultural communication barriers for multinational corporations in terms of team collaboration and conflict resolution?
Create and evaluate a scenario where, according to the Maryland Attorneys Rules of Professional Conduct, a conflict of interest might exist. The scenario must be detailed with names, actions, and a...
A random sample of 16 junior managers in the offices of corporations in a large city center was taken to estimate average daily commuting time for all such managers. Suppose that the population times...
Listed below are common types of current liabilities, contingencies, and commitments: a. Accounts payable b. Bank loans and commercial paper c. Notes payable d. Dividends payable e. Sales and excise...
For each of the following situations write the principle, assumption, or concept that justifies or explains what occurred. A. A landscaper received a customers order and cash prepayment to install...
Using the information in PA6, determine the amount of revenue and expenses for Olivias Apple Orchard for the month of September. Data from in PA6 Olivias Apple Orchard had the following transactions...
Explain what conservatism means, and give an example in your own words.
Riverbed Company sells on credits goods that cost $299,000 to Ricard Company for $409,500 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of...
ANSWER EVERYTHING IN DETAIL!!! PROVIDE APA REFERENCES!! Kali Linux uses different tools to work on cybersecurity. The tools are classified into: a) information gathering, b) vulnerability analysis,...
please send help to answer this question below. need the answer within 30min please. Knuth-Morris-Pratt's (KMP) algorithm preprocesses the pattern to find matches of prefixes of the pattern with the...

Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and

Question:

Step by Step Answer:

A To find Delta Cos desired pretax income we first need to calculate the income before taxes that would result in the desired aftertax income Desired ...View the full answer

Principles Of Accounting Volume 2 Managerial Accounting

Students also viewed these Business questions