Question: Use the information for Hamlet House in Exercise 15 and assume a tax rate for the company of 35 percent. In Exercise 15, Hamlet House
In Exercise 15, Hamlet House makes portable garden sheds that sell for $ 1,800 each. Costs are as follows:
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a. If Hamlet House wants to earn an after-tax profit of $ 182,000, how many garden sheds must be sold?
b. How much revenue is needed to yield an after-tax profit of 8 percent of revenue? How many garden sheds does this revenue amountrepresent?
Per Unit Total Direct material Direct labor Variable production ovehead Variable selling and administrative cost Fixed production overhead Fixed selling and administrative $800 90 60 50 $200,000 60,000
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