Assume the following cost behavior data for Graphic Arts Company: Sales price $18.00 per unit Variable costs $13.50 per unit Fixed costs $22,500 Tax rate 40% What volume of sales dollars is required to earn an after-tax income of $40,500? a.$360,000 b.$252,000 c.$90,000 d.$495,000

Assume the following cost behavior data for Graphic Arts Company: Sales price $18.00 per unit Variable costs $13.50 per unit Fixed costs $22,500 Tax rate 40% What volume of sales dollars is required to earn an after-tax income of $40,500? a.$360,000 b.$252,000 c.$90,000 d.$495,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Assume the following cost behavior data for Graphic Arts Company:

Sales price	$18.00	per unit
Variable costs	$13.50	per unit
Fixed costs	$22,500
Tax rate	40%

What volume of sales dollars is required to earn an after-tax income of $40,500?

a.$360,000

b.$252,000

c.$90,000

d.$495,000

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