Carter Manufacturing Company manufactures exclusive pens which sell for $60 per unit. Its unit variable costs are $28 and fixed expenses are $384,000. The company pays income tax at the rate of 30%....

Carter Manufacturing Company manufactures exclusive pens which sell for $60 per unit. Its unit variable costs are $28 and fixed expenses are $384,000. The company pays income tax at the rate of 30%.

Required:

1. How many units must Carter sell to earn an after-tax income of $22,400?

2. Re-compute the sales level to earn the above-mentioned after-tax income if the tax rate changes to 40%.

May 26, 2022

SOLUTION.PDF

Carter Manufacturing Company manufactures exclusive pens which sell for $60 per unit. Its unit variable costs are $28 and fixed expenses are $384,000. The company pays income tax at the rate of 30%....

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