Alexander Corporation sells its only product for $30 per unit. Its variable costs per unit are 40% of its selling price. Its total fixed costs for the year are $450,000. The company has an average income tax rate of 40%. How many units must the company sell in order to earn an after tax profit of $360,000? Question 12 options: 45,000. 58, 334. 1, 750, 020. 75,000.

Alexander Corporation sells its only product for $30 per unit. Its variable costs per unit are 40% of its selling price. Its total fixed costs for the year are $450,000. The company has an average income tax rate of 40%. How many units must the company sell in order to earn an after tax profit of $360,000? Question 12 options: 45,000. 58, 334. 1, 750, 020. 75,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

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Alexander Corporation sells its only product for $30 per unit. Its variable costs per unit are 40% of its selling
price. Its total fixed costs for the year are $450,000. The company has an average income tax rate of 40 %.
How many units must the company sell in order to earn an after tax profit of $360,000 ? Question 12
options: 45,000. 58,334. 1, 750, 020. 75,000.

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