The manager of a company is considering a special project that will increase sales revenue by $12,000 without affecting costs. If the company has a tax rate of 25%, what will be the after-tax income?

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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General accounting

The manager of a company is
considering a special project that will
increase sales revenue by $12,000
without affecting costs. If the company
has a tax rate of 25%, what will be the
after-tax income?
Transcribed Image Text:The manager of a company is considering a special project that will increase sales revenue by $12,000 without affecting costs. If the company has a tax rate of 25%, what will be the after-tax income?
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