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Cost-Volume-Profit Analysis Gannon Company sells a single product for $15 per unit. Variable costs are $10 per unit and fixed costs are $252,000 at an operating level of 16,000 to 30,000 units. a. What is Gannon Company's break-even point in units? b. How many units must be sold to earn $20,000 before income tax? X units X units c. How many units must be sold to earn $30,000 after income tax, assuming a 40% tax rate? * units

Cost-Volume-Profit Analysis Gannon Company sells a single product for $15 per unit. Variable costs are $10 per unit and fixed costs are $252,000 at an operating level of 16,000 to 30,000 units. a. What is Gannon Company's break-even point in units? b. How many units must be sold to earn $20,000 before income tax? X units X units c. How many units must be sold to earn $30,000 after income tax, assuming a 40% tax rate? * units

FINANCIAL ACCOUNTING
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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Cost-Volume-Profit Analysis Gannon Company sells a single product for $15 per unit. Variable costs are $10 per unit and fixed costs are $252,000 at an operating level of 16,000 to 30,000 units. a. What is Gannon Company's break-even point in units? b. How many units must be sold to earn $20,000 before income tax? X units x units c. How many units must be sold to earn $30,000 after income tax, assuming a 40% tax rate? x units
Transcribed Image Text:Cost-Volume-Profit Analysis Gannon Company sells a single product for $15 per unit. Variable costs are $10 per unit and fixed costs are $252,000 at an operating level of 16,000 to 30,000 units. a. What is Gannon Company's break-even point in units? b. How many units must be sold to earn $20,000 before income tax? X units x units c. How many units must be sold to earn $30,000 after income tax, assuming a 40% tax rate? x units
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