Preston Products produces a disinfecting liquid. The liquid is sold in one gallon containers and has the following price and cost characteristics. Sales price $ 62.00 per gallonVariable costs 38.00 per gallonFixed costs 535,200 per monthPreston Products is subject to an income tax rate of 20 percent. Required:How many gallons must Preston Products sell every month to break even? How many gallons must Preston Products sell to earn a monthly operating profit of $87,000 after taxes? Note: Round your answer to the nearest whole number. Break-even sales in gallons: Number of gallons to be sold:

Preston Products produces a disinfecting liquid. The liquid is sold in one gallon containers and has the following price and cost characteristics. Sales price $ 62.00 per gallonVariable costs 38.00 per gallonFixed costs 535,200 per monthPreston Products is subject to an income tax rate of 20 percent. Required:How many gallons must Preston Products sell every month to break even? How many gallons must Preston Products sell to earn a monthly operating profit of $87,000 after taxes? Note: Round your answer to the nearest whole number. Break-even sales in gallons: Number of gallons to be sold:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 11EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge...

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