Question: Based on table below... How many units would thecompany need to sell to obtain a profit of $100,000? How many units would the company have

Based on table below...

How many units would thecompany need to sell to obtain a profit of $100,000?

How many units would the company have to sell to obtain an after tax income of $120,000?

Target income volume = (FC + target Income) / Unit CM = ($150,000 + $100,000) / $200 = ??? units

Target income volume = (FC + [Target after tax income / (1 tax rate)] / Unit CM = ??? units

=================================================================================================================

Total Sales (1,000 pairs of boots)

==========

$500,000

Variable Costs

$300,000

Fixed Costs

$150,000

Tax Rate

25%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!