A Company Has Total Fixed Costs of $200,000

question 50

Essay

A company has total fixed costs of $200,000. Its product sells for $25 per unit and variable costs amount to $15 per unit. The company wishes to earn an after-tax income of $35,000. Assume that the company has a 30% tax rate. How many units must be sold to achieve this after-tax income level?

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Definitions:

Prospective Memory

Remembering to do something at some future time.

Historical Dates

Specific points in time that are recognized for their significant events or occurrences, often marking important moments in history.

Daydreaming

A short-term detachment from one’s immediate surroundings, during which a person's contact with reality is blurred and partially substituted by a visionary fantasy, especially one of happy, pleasant thoughts, hopes, or ambitions.

Implicit Memory

A type of memory in which previous experiences aid in the performance of a task without conscious awareness of these previous experiences.