The difference in the structure between Facebook and AT constructions. Introduction: Facebook is a social media site that allows users to perform a variety of tasks from personal to business platforms. Therefore, there entire business structure is based on the internet from the back office to marketing, finance, business core and etc. AT constructions are a construction company that bases few structures of their operations online. Therefore there operations are not solely based on the internet.

Question

Lexi Inc. has a single product, whose selling price is $250 and whose variable cost is 72% of sales price. The company’s monthly fixed expenses are $60,000. Assume a 40% tax rate. Required: 1. Using the equation method, compute the unit sales that are required to earn a target before-tax profit of $20,000. (Round your intermediate calculations and round up your final answer to the next whole number.)2. Using the contribution margin approach, compute the dollar sales that are required to earn a target before-tax profit of $25,000. (Round your intermediate calculations to nearest whole dollar amount.)

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Question

Chapter 7, Problem 10DQ

Summary Introduction

To determine:

The difference in the structure between Facebook and AT constructions.

Introduction:

Facebook is a social media site that allows users to perform a variety of tasks from personal to business platforms. Therefore, there entire business structure is based on the internet from the back office to marketing, finance, business core and etc.

AT constructions are a construction company that bases few structures of their operations online. Therefore there operations are not solely based on the internet.

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Lexi Inc. has a single product, whose selling price is $250 and whose variable cost is 72% of sales price. The company’s monthly fixed expenses are $60,000. Assume a 40% tax rate. Required: 1. Using the equation method, compute the unit sales that are required to earn a target before-tax profit of $20,000. (Round your intermediate calculations and round up your final answer to the next whole number.)2. Using the contribution margin approach, compute the dollar sales that are required to earn a target before-tax profit of $25,000. (Round your intermediate calculations to nearest whole dollar amount.)

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