Don't want AI answer Sterling Enterprises wishes to earn an after-tax net income of $22,000. Total fixed costs are$96,000, and the contribution margin per unitis $7.50. Sterling's tax rate is 35%. What is thenumber of units that must be sold to earn thetargeted net income?

Concept of Contribution MarginContribution margin represents the amount left after subtracting…

Answered: Sterling Enterprises wishes to earn an…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 13E

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Number of units that must be sold to earn the targeted net income?
Sterling Enterprises wishes to earn an after-tax net income of $22,000. Total fixed costs are $96,000, and the contribution margin per unit is $7.50. Sterling's tax rate is 35%. What is the number of units that must be sold to earn the targeted net income?
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Sterling Enterprises wishes to earn an after- tax net income of $22,000. Total fixed costs are $96,000, and the contribution margin per unit is $7.50. Sterling's tax rate is 35%. What is the number of units that must be sold to earn the targeted net income?