Question: Because Vaughn operates in a very competative environment,it is essential for the management team to understand its cost structure and how it affects the company's

Because Vaughn operates in a very competative environment,it is essential for the management team to understand its cost structure and how it affects the company's profitability.For one of its key products,Vaughn notes a selling price of $15 and a variable cost of $5 per unit.Fixed costs associated with this product line are $16,500.Vaughn motors is subject to a tax rate of 25%.

If vaughn wants to generate operating income of $18,000,how many units of this produt must be sold?

Number of units to be sold Units

How many must be sold to generate $19,500 of after - tax income?

Number of units to be sold units

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