Mona Company incurs $60,000 of annual fixed costs inmanufacturing and selling a product that...

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Accounting

Mona Company incurs $60,000 of annual fixed costs inmanufacturing and selling a product that it sells for $15 per unit.The variable costs of manufacturing and selling the product are $9per unit. If Mona Company has a30% income tax rate, and its management wants to earn an annualafter-tax income of $35,000. Determine thedollar sales volume that the company must achieve to reach thistarget income level.
$200,000
$350,000
$275,000
$95,000
$250,000
Mona Company incurs $60,000 of annual fixed costs inmanufacturing and selling a product that it sells for $15 per unit.The variable costs of manufacturing and selling the product are $9per unit. If Mona Company has a 30% income tax rate,determine the amount of after-tax income that MonaCompany would earn from $420,000 sales volume.
$108,000
$90,000
$28,000
$75,600
$280,000

Answer & Explanation Solved by verified expert

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Part 1 Fixed cost 60000 Selling price per unit 15 Variable cost per unit 9 Income tax rate 30 Target profit after tax income 35000 Contribution margin per unit Selling price per unit Variable cost per unit 159 6 See Answer

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In: AccountingMona Company incurs $60,000 of annual fixed costs inmanufacturing and selling a product that it...Mona Company incurs $60,000 of annual fixed costs inmanufacturing and selling a product that it sells for $15 per unit.The variable costs of manufacturing and selling the product are $9per unit. If Mona Company has a30% income tax rate, and its management wants to earn an annualafter-tax income of $35,000. Determine thedollar sales volume that the company must achieve to reach thistarget income level.$200,000$350,000$275,000$95,000$250,000Mona Company incurs $60,000 of annual fixed costs inmanufacturing and selling a product that it sells for $15 per unit.The variable costs of manufacturing and selling the product are $9per unit. If Mona Company has a 30% income tax rate,determine the amount of after-tax income that MonaCompany would earn from $420,000 sales volume.$108,000$90,000$28,000$75,600$280,000