Acme Inc. sells Product Yellow for $23/unit. Variable costs for Product Yellow are $13/unit; fixed costs are $26,000. Acme Inc. desires an income of $10,000 (after taxes) from sales of this product. Its income tax rate is 20%. How many units of Product Yellow must it sell to achieve its target income? Question 9Answer a. 12,500 units b. 2,600 units c. 3,850 units d. 3,600 units
Acme Inc. sells Product Yellow for $23/unit. Variable costs for Product Yellow are $13/unit; fixed costs are $26,000. Acme Inc. desires an income of $10,000 (after taxes) from sales of this product. Its income tax rate is 20%. How many units of Product Yellow must it sell to achieve its target income? Question 9Answer a. 12,500 units b. 2,600 units c. 3,850 units d. 3,600 units
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...
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Acme Inc. sells Product Yellow for $23/unit. Variable costs for Product Yellow are $13/unit; fixed costs are $26,000. Acme Inc. desires an income of $10,000 (after taxes) from sales of this product. Its income tax rate is 20%. How many units of Product Yellow must it sell to achieve its target income?
Question 9Answer
a.
12,500 units
b.
2,600 units
c.
3,850 units
d.
3,600 units
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