E10-13 Effect of Taxes on Break-Even and Target Volume LO6 Yosemite Enterprises desires to earn an after-tax income of $150,000. It has fixed costs of $1,000,000, a unit sales price of $500, and unit variable costs of $200. The company is in the 30% tax bracket. How many dollars of sales revenue must be earned to achieve the after-tax profit of $150,000? How many dollars of revenue would have to be earned to achieve $150,000 of profit, if there had been no income tax?

E10-13 Effect of Taxes on Break-Even and Target Volume LO6 Yosemite Enterprises desires to earn an after-tax income of $150,000. It has fixed costs of $1,000,000, a unit sales price of $500, and unit variable costs of $200. The company is in the 30% tax bracket. How many dollars of sales revenue must be earned to achieve the after-tax profit of $150,000? How many dollars of revenue would have to be earned to achieve $150,000 of profit, if there had been no income tax?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 13E

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