Mona Company incurs $60,000 of annual fixed costs in manufacturing and selling a product that it sells for $15 per unit. The variable costs of manufacturing and selling the product are $9per unit. If Mona Company has a30% income tax rate, and its management wants to earn an annual after-tax income of $35,000.  Determine the dollar sales volume that the company must achieve to reach this target income level.

$200,000

$350,000

$275,000

$95,000

$250,000

Mona Company incurs $60,000 of annual fixed costs in manufacturing and selling a product that it sells for $15 per unit. The variable costs of manufacturing and selling the product are $9 per unit. If Mona Company has a 30% income tax rate, determine the amount of after-tax income that Mona Company would earn from $420,000 sales volume.

$108,000

$90,000

$28,000

$75,600

$280,000

Answer rating: 100% (QA)

Part 1 Fixed cost 60000 Selling price per unit 15 Variable cost per unit 9 Income tax rate 30 Target ... View the full answer