Net Income Planning Midvale Corporation sells a single product for $100 per unit, of which $40 is contribution margin. Fixed costs total $180, 000 and net income before income tax is $48, 000. Determine the following a. The present sales volume in dollars. $Answer 570, 000 b. The break - even point in units. Answer 4, 500 units c. The sales volume in units necessary to attain a net income before income tax of $60, 000 Answer 6, 000 units d. The sales volume in units necessary to attain a net income before income tax equal to 10% of sales revenue. Answer 5, 925 units e. The sales volume
Net Income Planning Midvale Corporation sells a single product for $100 per unit, of which $40 is contribution margin. Fixed costs total $180, 000 and net income before income tax is $48, 000. Determine the following a. The present sales volume in dollars. $Answer 570, 000 b. The break - even point in units. Answer 4, 500 units c. The sales volume in units necessary to attain a net income before income tax of $60, 000 Answer 6, 000 units d. The sales volume in units necessary to attain a net income before income tax equal to 10% of sales revenue. Answer 5, 925 units e. The sales volume in units necessary to attain an after - tax net income of $54, 000 if the tax rate is 40% Answer 6,750 units.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
