Taylormade Inc. wishes to earn a pre-tax income of $40,000. The company's total fixed costs are $100,000, and the contribution margin per unit is $8.00. How many units must be sold to earn the targeted pre-tax income? a. 17,500 b. 14,500 c. 16,000 d. 12,500

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2CE
icon
Related questions
Question

Targeted pre tax income?

Taylormade Inc. wishes to earn a pre-tax
income of $40,000. The company's total fixed
costs are $100,000, and the contribution
margin per unit is $8.00. How many units
must be sold to earn the targeted pre-tax
income?
a. 17,500
b. 14,500
c. 16,000
d. 12,500
Transcribed Image Text:Taylormade Inc. wishes to earn a pre-tax income of $40,000. The company's total fixed costs are $100,000, and the contribution margin per unit is $8.00. How many units must be sold to earn the targeted pre-tax income? a. 17,500 b. 14,500 c. 16,000 d. 12,500
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning