The following information is for Nichols Company: Selling price $120 per unit Variable costs $50 per unit Total fixed costs $315,000 If the tax rate is 30% how many units need to be sold to achieve a net income of $37800? ( the 37800 is desired after tax amount)

The following information is for Nichols Company: Selling price $120 per unit Variable costs $50 per unit Total fixed costs $315,000 If the tax rate is 30% how many units need to be sold to achieve a net income of $37800? ( the 37800 is desired after tax amount)

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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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

The following information is for Nichols Company: Selling price $120 per unit
Variable costs $50 per unit
Total fixed costs $315,000
If the tax rate is 30% how many units need to be sold to achieve a net income of $37800? ( the
37800 is desired after tax amount)

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