Victor Co. sells ratios for $30 each. Fixed costs total $15,000. Unit variable costs $20. The...
Victor Co. sells ratios for $30 each. Fixed costs total $15,000. Unit variable costs $20. The tax rate is 40%. How many radios must Victor Co. sell to earn after-tax profit of $21,000?
Homework Answers
Profit before tax = 21000/(1-0.40) = $35000
Units need to sale = (Fixed cost+ Profit)/(sale - variable cost)
= (15000+35000)/(30-20)
= 5000 units
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