Carter Manufacturing Company manufactures exclusive pens which sell for $71 per unit. Its unit variable...
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Accounting
Carter Manufacturing Company manufactures exclusive pens which sell for $71 per unit. Its unit variable costs are $50 and fixed expenses are $389,500. The company pays income tax at the rate of 40%.
Required:
1.
How many units must Carter sell to earn an after-tax income of $24,600?
2.
Re-compute the sales level to earn the above-mentioned after-tax income if the tax rate changes to 20%.
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