Net Income PlanningHolland Corporation earned an after-tax net income of $182,000 last year. Fixed costs were $750,000. The selling price per unit of its product was $130, of which $60 was a contribution tofixed cost and net income. The income tax rate was 35%.Round UP answers to the nearest unit, when applicable.a. How many units of product were sold last year? 0unitsb. What was the break-even point in units last year? 0c. The company wishes to increase its after-tax net income by 20% this year. If selling prices and the income tax rate remain unchanged, how many units must be sold?0unitsunits

Breakeven is the point at which the entity is in a situation of no profit and no loss. At this…

Answered: Holland Corporation earned an after-tax…

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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Similar questions

Last year, Flynn Company reported a profit of $70,000 when sales totaled $520,000 and the contribution margin ratio was 40%. If fixed expenses increase by $10,000 next year, what amount of sales will be necessary in order for the company to earn a profit of $80,000?
Canoncito Co. produced and sold 6,000 units for $12 per unit. The variable cost was $3 per unit, and the company had net income of $27,000 last year. What is the breakeven point in sales dollars? $54,000 $108,000 $72,000 $36,000 None of the above
Last year, Bridgerton Co. had sales of $1,625,000 on the sale of 25,000 units, variable costs of $450,000 and fixed costs of $250,000. Assume a tax rate of 30%. What level of sales in units would be required to achieve an after-tax profit of $110,000 (rounded to the nearest whole number)? 4 10,664 8,663 10,263 9,264
Sarratt Corporation's contribution margin ratio is 70% and its fixed monthly expenses are $38,000. Assume that the company's sales for May are expected to be $97,000. Required: Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change. Net operating income
2. An audio equipment manufacturer produced and sold 725 sound systems and made a net income of $50, 000 last year, with a total revenue of $1, 015, 000. The manufacturer's break-even volume is 600 units. a. Calculate the selling price of each sound system. b. Calculate the variable costs for each sound system. c. Calculate the fixed costs per year.
Moyas Corporation sells a single product for $20 per unit. Last year, the company's sales revenuewas $300,000 and its net operating income was $24,000. If fixed expenses totaled $96,000 for theyear, the break-even point in unit sales was:A) 12,000 units B) 14,100 units C) 9,900 units D) 15,000 units
Fourth Street Lighting shows a net income of $224 000 for the previous year. If the contribution rate for the store was 40.3%, and the fixed cost was $315 000, what were last year’s sales?
Dean Company has sales of $76,000, and the break-even point in sales dollars is $47,120. Determine the company's margin of safety percentage. Round answer to the nearest whole number.fill in the blank 1 %
Creswell Corporation's fixed monthly expenses are $30,000 and its contribution margin ratio is 63%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $92,000? Multiple Choice $4,040 $27,960 $62,000 $57,960
Jilk Incorporated's contribution margin ratio is 61% and its fixed monthly expenses are $48,500. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $139,000? $84,790 $5,710 $36,290 $90,500

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