Gannon Company sells a single product for $18.75 per unit. Variable costs are $9 per unit and fixed costs are $134,9 Round UP answers to the nearest unit, when applicable. a. What is Gannon Company's break-even point in units? 0 b. How many units must be sold to earn $20,000 before income tax? 0 units units

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Cost-Volume-Profit Analysis
Gannon Company sells a single product for $18.75 per unit. Variable costs are $9 per unit and fixed costs are $134,940 at an operating level of 12,000 to 25,000 units.
Round UP answers to the nearest unit, when applicable.
a. What is Gannon Company's break-even point in units? 0
b. How many units must be sold to earn $20,000 before income tax? 0
units
units
c. How many units must be sold to earn $30,000 after income tax, assuming a 40% tax rate?
0
units
Transcribed Image Text:Cost-Volume-Profit Analysis Gannon Company sells a single product for $18.75 per unit. Variable costs are $9 per unit and fixed costs are $134,940 at an operating level of 12,000 to 25,000 units. Round UP answers to the nearest unit, when applicable. a. What is Gannon Company's break-even point in units? 0 b. How many units must be sold to earn $20,000 before income tax? 0 units units c. How many units must be sold to earn $30,000 after income tax, assuming a 40% tax rate? 0 units
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