The following information pertains to Korning Corp.: Selling price per unit $ 670 Variable cost per unit $ 250 Total fixed costs $ 327,600 Income tax rate 35 % How many total units must be sold to obtain an after-tax profit (πA) of $47,775?
The following information pertains to Korning Corp.: Selling price per unit $ 670 Variable cost per unit $ 250 Total fixed costs $ 327,600 Income tax rate 35 % How many total units must be sold to obtain an after-tax profit (πA) of $47,775?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information pertains to Korning Corp.:
Selling price per unit | $ | 670 | ||
Variable cost per unit | $ | 250 | ||
Total fixed costs | $ | 327,600 | ||
Income tax rate | 35 | % | ||
How many total units must be sold to obtain an after-tax profit (πA) of $47,775?
Expert Solution
Step 1
Introduction:
The After-Tax Profit Margin is a performance ratio that determines the percentage of a company's revenue that remains, after all, operating expenses, interest, taxes, and stock dividends have been deducted from total revenue.
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