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Required Determine the following (show key computations): a. The present sales volume in dollars. b. The break-even point in units. C. The sales volume in units necessary to attain a net income before income tax of $39,600. d. The sales volume in units necessary to attain a net income before income tax equal to 20% sales revenue.

Required Determine the following (show key computations): a. The present sales volume in dollars. b. The break-even point in units. C. The sales volume in units necessary to attain a net income before income tax of $39,600. d. The sales volume in units necessary to attain a net income before income tax equal to 20% sales revenue.

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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**Net Income Planning** Superior Corporation sells a single product for $60 per unit, of which $36 is contribution margin. Fixed costs total $72,000 and net income before income tax is $28,800. **Required** Determine the following (show key computations): a. The present sales volume in dollars. b. The break-even point in units. c. The sales volume in units necessary to attain a net income before income tax of $39,600. d. The sales volume in units necessary to attain a net income before income tax equal to 20% of sales revenue. e. The sales volume in units necessary to attain an after-tax net income of $43,200 if the tax rate is 40%.
Transcribed Image Text:**Net Income Planning** Superior Corporation sells a single product for $60 per unit, of which $36 is contribution margin. Fixed costs total $72,000 and net income before income tax is $28,800. **Required** Determine the following (show key computations): a. The present sales volume in dollars. b. The break-even point in units. c. The sales volume in units necessary to attain a net income before income tax of $39,600. d. The sales volume in units necessary to attain a net income before income tax equal to 20% of sales revenue. e. The sales volume in units necessary to attain an after-tax net income of $43,200 if the tax rate is 40%.
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