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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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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