Peak Performance Inc. has the following data for its product: Revenue per unit: $150 Variable costs per unit: $50 Total fixed costs: $60,000 Tax rate: 25% Desired after-tax profit: $120,000 What is the number of units that Peak Performance Inc. must sell to earn the desired after-tax profit?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...
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Peak performance Inc. Has the following data for its product: please answer the accounting question

Peak Performance Inc. has the following data for its product:
Revenue per unit: $150
Variable costs per unit: $50
Total fixed costs: $60,000
Tax rate: 25%
Desired after-tax profit: $120,000
What is the number of units that Peak Performance Inc. must sell to earn
the desired after-tax profit?
Transcribed Image Text:Peak Performance Inc. has the following data for its product: Revenue per unit: $150 Variable costs per unit: $50 Total fixed costs: $60,000 Tax rate: 25% Desired after-tax profit: $120,000 What is the number of units that Peak Performance Inc. must sell to earn the desired after-tax profit?
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