John Company has the following information:
Income tax rate 40%
Selling price per unit $7.50
Variable cost per unit $2.50
Total fixed costs $100,000
Target after-tax net income $42,000
Assume the tax rate decreases to 30%. How many fewer units can be sold to retain the same after-tax net income of $42,000?
A) 1,000
B) 2,000
C) 32,000
D) 34,000
B
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Redribbon Gallery reported the following assets on its December 31, 2017 balance sheet
Dec. 31, 2017 Dec. 31, 2016 Cash $35,000 $28,000 Accounts Receivable 97,000 85,000 Merchandise Inventory 80,000 62,000 Prepaid Expenses 29,000 20,000 Property, plant, and equipment, net 30,000 18,000 If the net sales for the year amounted to $850,000, what is the asset turnover ratio for 2017? What will be an ideal response
Property taken by the local government under the power of eminent domain must have:
a. the property zoning b. fair and just compensation to the landowner c. a use not necessarily for the public good d. All of the above