Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Financial Accounting Question

Neon Lock Systems manufactures and sells a single security device. The following
operational data are provided:
•
Unit Sales Price: $45
•
Variable Manufacturing Cost per Unit: $26
.
Fixed Manufacturing Cost: $85,000
•
Variable Selling Cost per Unit: $3
•
Fixed Selling Cost: $30,000
•
Tax Rate: 35%
What total revenue is required to achieve an after-tax profit of $65,000?
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Transcribed Image Text:Neon Lock Systems manufactures and sells a single security device. The following operational data are provided: • Unit Sales Price: $45 • Variable Manufacturing Cost per Unit: $26 . Fixed Manufacturing Cost: $85,000 • Variable Selling Cost per Unit: $3 • Fixed Selling Cost: $30,000 • Tax Rate: 35% What total revenue is required to achieve an after-tax profit of $65,000?
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