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

See similar textbooks

Similar questions

Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
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. 1. How many dollars of sales revenue must be earned to achieve the after-tax profit of $150,000? 2. How many dollars of revenue would have to be earned to achieve $150,000 of profit, if there had been no income tax?
PROBLEM 3: The company expected to sell 45,000 units next year with the following results: Sales P900,000 Variable costs 540,000 360,000 150,000 210,000 84,000 P126,000 Contribution margin Fixed costs Income before taxes Income taxes Net income a. If the company wants an after-tax return on sales of 15% on its expected volume of 45,000 units, what price must it charge? a. 19.66 b. 20.44 c. 20.22 d. 22.22
Problem related to Accounting: Raven Company has a target of earning $88,000 pre-tax income. The contribution margin ratio is 35%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $52,000? a. $313,555. b. $306,000. c. $300,000. d. $353,333. e. $400,000.
Help, I know the answer is between b and d but I am not sure which one?, please solve it by yourself A company requires $600,000 in sales to meet its target net income after tax. Itscontribution margin is 40%, and fixed costs are $80,000. How much is the target netincome, given that its after-tax rate is 70%?a. $160,000b. $112,000c. $400,000d. $48,000
Cost accounting
Chapter: Cost Volume Profit (CVP) Analysis Q) Chaudhary Group Ltd manufactures premium high definition televisions. The firm’s fixed costs are $4,000,000 per year. The variable cost of each TV is $2,000, and the TVs are sold for $3,000 each. The company sold 5,000 TVs during the previous year. (In the following requirements, ignore income taxes) Required: Treat each of the requirements as independent situations:a) Calculate the break-even point in units. b) What will the new break-even point be if fixed costs increase by 10 per cent? c) What was the company’s net profit for the previous year? d) The sales manager believes that a reduction in the sales price to $2,500 will result in orders for 1,200 more TVs each year. What will the break-even point be if the price is changed?
Annual fixed costs of A The company incurs 250,000 dinars for the production and sale of one product. The company's sales are estimated at 125,000 units, and it is required to achieve income after tax of 75,000 dinars, and the tax rate is 40%. What is the maximum amount that the company spends against the variable costs per unit if you know that the selling price for each * unit is 6 dinars p 4:10
H-5
chose choose best answer
Problem related accounting
PROBLEM 2. Outlast Company's projected profit for the coming year follows: Per Unit Total P200,000 (120,000) 80,000 (64,000) P 16,000 Sales Less: Variable costs P20 (12) P 8 Contribution margin Less Fixed expenses Income 4. Suppose Outlast would like to earn operating income equ to 20 percent of sales revenue. How many units must be sold for this goal to be realized? 5. For the projected level of sales, compute the margin of safety.