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The Wolter Company Has Provided the Following Information Required:
A) Compute the Break-Even Point in Units

Question 121

Essay

The Wolter Company has provided the following information:
 Income tax rate 50% Selling price per unit $6.60 Variable cost per unit $5.00 Total fixed costs $46,000.00\begin{array}{ll}\text { Income tax rate } & 50 \% \\\text { Selling price per unit } & \$ 6.60 \\\text { Variable cost per unit } & \$ 5.00 \\\text { Total fixed costs } & \$ 46,000.00\end{array}
Required:
A) Compute the break-even point in units.
B) Compute the sales volume in units necessary to generate an after-tax net income of $10,000.
C) Compute the sales volume in units necessary to generate an after-tax net income of $20,000.

Correct Answer:

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A)$46,000 / ($6.60 - $5.00)= 2...

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