Revenue is $100 per unit, variable costs are $20 per unit, and total fixed costs are $40,000. Compute the number of units that must be sold to earn an after-tax profit of $96,000. The tax rate is 20%.

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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Revenue is $100 per unit, variable costs
are $20 per unit, and total fixed costs
are $40,000. Compute the number of
units that must be sold to earn an
after-tax profit of $96,000. The tax
rate is 20%.
Transcribed Image Text:Revenue is $100 per unit, variable costs are $20 per unit, and total fixed costs are $40,000. Compute the number of units that must be sold to earn an after-tax profit of $96,000. The tax rate is 20%.
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