FUNDAME.OF COST ACCT. W/CONNECT
6th Edition
ISBN: 9781264508341
Author: LANEN
Publisher: MCG CUSTOM
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Chapter 3, Problem 43E
CVP with Income Taxes
Hammerhead Charters runs fishing trips out of the local port. Hammerhead charges $50 per trip for a half-day trip. Variable costs for Hammerhead total $20 per trip and the fixed costs are $6,000 per month. Hammerhead is subject to an income tax rate of 25 percent.
Required
- a. How many trips must Hammerhead sell to break even?
- b. How many trips must Hammerhead sell to earn a monthly operating profit of $9,000 after taxes?
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Chapter 3 Solutions
FUNDAME.OF COST ACCT. W/CONNECT
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