Carson Products Has the Following Product Information Available Required: If Carson Is in the 40% Tax Bracket,how Many

question 114

Essay

Carson Products has the following product information available:
$\begin{array}{llcc} \text { Sales price } & \text { \( \$ 20 \) per unit} \\ \text { Variable costs } & \text { \( \$ 4 \) per unit } \\ \text { Fixed costs} & \text { \( \$ 50000 \)} \\\end{array}$

Required: If Carson is in the 40% tax bracket,how many units need to be sold in order to earn an after-tax target profit of $300 000?

---

Definitions:

Total Value

The overall financial value of an entity or asset, calculated by summing all components of worth.

Lump Sum Payment

A large, one-time payment made for a particular purpose, rather than a series of smaller installments.

Compounded Annually

Interest on an investment or loan is calculated annually on both the initial principal and previously accumulated interest.

Loan

Borrowed capital that is expected to be repaid with interest by the borrower to the lender at a future date.