the after-tax income? The manager of a company is considering a specialproject that will increase sales revenue by $50,000without affecting costs. If the company has a tax rateof 30%, what will be the after-tax income?

To find the after-tax income, we need to calculate the tax expense and subtract it from the…

Answered: The manager of a company is considering…

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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1. If the company want to achieve target net income $800,000 and the tax rate is 30%, calculate how many units to be sold to achieve those targets? 2. The owner estimates that if he can spend an additional $75,000 towards sales promotion,sales in unit may increase by 30%. What should Mr. Budi’ decision be?
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The manager of a company is considering a special project that will increase sales revenue by $50,000 without affecting costs. If the company has a tax rate of 30%, what will be the after-tax income?