E6-12A. Net Income Planning Nolden Company has charged a selling price of $24 per unit, incurred variable costs of $15 per unit, and total fixed costs of $108,000. What unit sales volume is necessary to earn the following related amounts of net income before income tax? a. $18,000; b. $27,000; or c. Equal to 20% of sales revenue.

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter22: S Corporations
Section: Chapter Questions
Problem 16CE
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E6-12A. Net Income Planning Nolden Company has charged a selling price of $24 per unit, incurred variable
costs of $15 per unit, and total fixed costs of $108,000. What unit sales volume is necessary to earn the
following related amounts of net income before income tax?
a.
$18,000;
b. $27,000; or
c. Equal to 20% of sales revenue.
Transcribed Image Text:E6-12A. Net Income Planning Nolden Company has charged a selling price of $24 per unit, incurred variable costs of $15 per unit, and total fixed costs of $108,000. What unit sales volume is necessary to earn the following related amounts of net income before income tax? a. $18,000; b. $27,000; or c. Equal to 20% of sales revenue.
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