Atkinson Company Wishes to Earn After-Tax Net Income of $18,000

question 29

Multiple Choice

Atkinson Company wishes to earn after-tax net income of $18,000.Total fixed costs are $84,000 and the contribution margin is $6.00 per unit.Atkinson's tax rate is 40%.The number of units that must be sold to earn the targeted net income is ________.

• A) 14,000
• B) 17,000
• C) 19,000
• D) 21,500

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Definitions:

Instrumental Case Study

A case study conducted to provide insights into an issue or to refine a theoretical explanation, using the case as a tool to understand more general principles.

Insight

A deep understanding or realization that comes from analysis or introspection.

Issue

A topic of discussion, concern, or dispute that invites attention, analysis, or resolution.

Generalizable

The extent to which findings from a study can be applied or extended to broader contexts beyond the original sample or setting.