Flounder Company, which is subject to a 40% income tax rate,projected its income before taxes for next year as shownhere:
| Sales (272,000 units) | | $13,600,000 |
| Cost of sales | | |
| Variable costs | | 3,400,000 |
| Fixed costs | | 5,100,000 |
| Pretax earning | | $5,100,000 |
1) If Flounder wants $7,650,000 in pretax earning, what is therequired level of sales, in dollars?
2) If Flounder’s net assets are $61,200,000, what amount ofrevenue must be achieved for Flounder to earn a 10% after-taxreturn on assets?
3) If Flounder wants after-tax earnings of 30% of sales, what isthe required level of sales in dollars and in units?
