Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Related questions
Question
Strongsville company wishs to solve this question general Accounting
Transcribed Image Text:Strongsville Company wishes to earn after-tax net income of
$18,000. Total fixed costs are $84,000, and the contribution
margin per unit is $6.00. Strongsville's tax rate is 40%. What is
the number of units that must be sold to earn the targeted net
income?
A. 14,000
B. 17,000
C. 19,000
D. 21,500
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 2 steps
Knowledge Booster
Similar questions
- Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)arrow_forwardDelta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.arrow_forwardNewell company wishes to earn a pre tax income please solve this questionarrow_forward
- The following annual information is for Dexter Corporation: Product A Revenue per unit: $20.00 Variable cost per unit: $15.00 Total fixed costs: $100,000 How many units does the company have to sell to achieve an after tax income of $75,000 if the income tax rate is 25%?arrow_forward2.arrow_forwardPlease help me figure a-earrow_forward
- Jack's Jax has total fixed costs of $25,000. If the company's contribution margin is 60%, the income tax rate is 25% and the selling price of a box of Jax is $20, how many boxes of Jax would the company need to sell to produce a net income of $15,000? OA. 5,625 B. 4,445 C. 3,750 D. 3,333arrow_forwardThe following annual information is for Bressler Corporation: Product X Revenue per unit: $10.00 Variable cost per unit: $5.00 Total fixed costs: $100,000 How many units the company has to sell to achieve an after tax income of $75,000 if the income tax rate is 25%?arrow_forwardPeak performance Inc. Has the following data for its product: please answer the accounting questionarrow_forward
- Net Income Planning Nolden Company has charged a selling price of $24 per unit, incurred variable costs of $15 per unit, and total fixed costs of $108,000. What unit sales volume is necessary to earn the following related amounts of net income before income tax? a. $18,000; b. $27,000; or c. equal to 20% of sales revenue. Round UP answers to the nearest unit, when applicable. (a) 0 (b) (C) 0 0 units units unitsarrow_forwardOlivian Company wants to earn $420,000 in net (after-tax) income next year. Its product ispriced at $275 per unit. Product costs include: Direct materials $90Direct labor $65Variable overhead $16Total fixed factory overhead $440,000 Variable selling expense is $14 per unit; fixed selling and administrative expense totals $290,000.Olivian has a tax rate of 40 percent.Required:1. Calculate the before-tax profit needed to achieve an after-tax target of $420,000.2. Calculate the number of units that will yield operating income calculated in Requirement 1above. (Round to the nearest unit.)arrow_forwardIf selling price per unit is $40, variable costs per unit are $25, total fixed costs are $20,000, the tax rate is 30%, and the company sells 5,000 units, net income is? Consider the information given below. If the owner contributes $44,800 and the owner withdraws $4,300, how much is the net income (loss)? Assets Liabilities Beginning of Year End of Year $27,000 $18,000 $60,000 $26,000 Billy's Exterminators, Inc. has sales revenue of $743,000, fixed and variable costs of $294,000, depreciation expense of $46,000, interest expense of $33,000, and an (effective) tax rate of 35 percent. What is the net income for this firm?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College