Hamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company
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Question:
Hamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is 35 percent. Costs are as follows:
| Per Unit | Total | |
|---|---|---|
| Direct material | $800 | |
| Direct labor | 90 | |
| Variable production overhead | 60 | |
| Variable selling and administrative cost | 50 | |
| Fixed production overhead | $280,000 | |
| Fixed selling and administrative | 84,000 |
a. If Hamlet House wants to earn an after-tax profit of $254,800, how many garden sheds must be sold?
b. How many garden sheds must be sold to yield an after-tax profit of 8 percent of revenue?
Note: Do not round until your final answer.
Note: Round your final answer up to the nearest whole unit (for example, round 5.1 to 6 units).
c. How much revenue is generated from selling units calculated in part (b)?
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