Atlanta Corp. has supplied you with the following information: Variable cost per unit $450 Selling price per unit $600 Total fixed costs $1,800,000 Tax rate 50% Non-cash expenses $300,000 Required: Compute the break-even point in units Compute the break-even point in dollars Compute the target sales volume in units assuming a target net income before taxes of $300,000 Compute the target sales volume
Atlanta Corp. has supplied you with the following information: Variable cost per unit $450 Selling price per unit $600 Total fixed costs $1,800,000 Tax rate 50% Non-cash expenses $300,000 Required: Compute the break-even point in units Compute the break-even point in dollars Compute the target sales volume in units assuming a target net income before taxes of $300,000 Compute the target sales volume
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
4.Atlanta Corp. has supplied you with the following information:
Variable cost per unit $450
Selling price per unit $600
Total fixed costs $1,800,000
Tax rate 50%
Non-cash expenses $300,000
Required:
- Compute the break-even point in units
- Compute the break-even point in dollars
- Compute the target sales volume in units assuming a target net income before taxes of $300,000
- Compute the target sales volume in dollars assuming a target net income after taxes of $300,000
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