Problem

CVP Analysis with Income Taxes Cohen Company produces and sells socks. Variable costs are...

CVP Analysis with Income Taxes Cohen Company produces and sells socks. Variable costs are $6 per pair, and fixed costs for the year total $75,000. The selling price is $10 per pair.

Required Calculate the following:

1. The breakeven point in units.


2. The breakeven point in sales dollars.


3. The units required to make a before-tax profit of $40,000.


4. The sales in dollars required to make a before-tax profit of $35,000.


5. The sales, in units and in dollars, required to make an after-tax profit of $25,000 given a tax rate of 30%.

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