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Problem 3-70 (Algo) Extensions of the CVP Model-Taxes (LO 3-4) Roxford Plastics manufactures and sells model airplane kits for hobbyists for a price of $14. The fixed costs amount to $178,000 per year, of which $113,000 is manufacturing related. At an annual sales volume of 35.400 kits, Roxford earns $73,025 after taxes. Roxford has an income tax rate of 23 percent. Required: What is the variable cost per unit for a kit? Note: Round your answer to 2 decimal places. Variable cost per unit

Problem 3-70 (Algo) Extensions of the CVP Model-Taxes (LO 3-4) Roxford Plastics manufactures and sells model airplane kits for hobbyists for a price of $14. The fixed costs amount to $178,000 per year, of which $113,000 is manufacturing related. At an annual sales volume of 35.400 kits, Roxford earns $73,025 after taxes. Roxford has an income tax rate of 23 percent. Required: What is the variable cost per unit for a kit? Note: Round your answer to 2 decimal places. Variable cost per unit

FINANCIAL ACCOUNTING
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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Problem 3-70 (Algo) Extensions of the CVP Model-Taxes (LO 3-4) Roxford Plastics manufactures and sells model airplane kits for hobbyists for a price of $14. The fixed costs amount to $178,000 per year, of which $113,000 is manufacturing related. At an annual sales volume of 35.400 kits, Roxford earns $73,025 after taxes. Roxford has an income tax rate of 23 percent. Required: What is the variable cost per unit for a kit? Note: Round your answer to 2 decimal places. Variable cost per unit
Transcribed Image Text:Problem 3-70 (Algo) Extensions of the CVP Model-Taxes (LO 3-4) Roxford Plastics manufactures and sells model airplane kits for hobbyists for a price of $14. The fixed costs amount to $178,000 per year, of which $113,000 is manufacturing related. At an annual sales volume of 35.400 kits, Roxford earns $73,025 after taxes. Roxford has an income tax rate of 23 percent. Required: What is the variable cost per unit for a kit? Note: Round your answer to 2 decimal places. Variable cost per unit
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