Assume the following cost information for Johnson Company: Selling price $190 per unit Variable costs $80 per unit Total fixed costs $95,000 Tax rate 21% If Johnson Company desires to earn $30,000 net income: What is the target operating income it must earn? Assume the tax rate is 21% How many units must be sold to achieve this target operating income? What amount of sales revenue must be earned to achieve this target operating income?
Assume the following cost information for Johnson Company: Selling price $190 per unit Variable costs $80 per unit Total fixed costs $95,000 Tax rate 21% If Johnson Company desires to earn $30,000 net income: What is the target operating income it must earn? Assume the tax rate is 21% How many units must be sold to achieve this target operating income? What amount of sales revenue must be earned to achieve this target operating income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume the following cost information for Johnson Company:
Selling price $190 per unit
Variable costs $80 per unit
Total fixed costs $95,000
Tax rate 21%
If Johnson Company desires to earn $30,000 net income:
What is the target operating income it must earn? Assume the tax rate is 21%
How many units must be sold to achieve this target operating income?
What amount of sales revenue must be earned to achieve this target operating income?
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