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