Barney, Inc., is subject to a 40% income tax rate. The following data pertain to the period just ended when the company produced and sold 45,000 units: Sales revenue $1,350,000 Variable costs 810,000 Fixed costs 432,000 a. How many units must Barney sell to break even? b. How many units must Barney sell to earn an after-tax profit of $180.000? c. Prepare CM format income statement for "b" above.

Barney, Inc., is subject to a 40% income tax rate. The following data pertain to the period just ended when the company produced and sold 45,000 units: Sales revenue $1,350,000 Variable costs 810,000 Fixed costs 432,000 a. How many units must Barney sell to break even? b. How many units must Barney sell to earn an after-tax profit of $180.000? c. Prepare CM format income statement for "b" above.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CE: Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at...

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