A Manager Is Considering a Special Project

question 2

Essay

A manager is considering a special project. Corporate policy dictates that all special projects must generate an after-tax profit of $21,000. If the company expects costs related to the project to be equal to $43,000, what is the before-tax cash sales price that should be charged in order to adhere to corporate policy assuming the company has a tax rate of 30%?

---

Definitions:

Tariff Revenue

is the income generated by a government from the imposition of tariffs, which are taxes on imported goods.

Tariff

A tax imposed by a government on goods and services imported from other countries to protect domestic industries or to generate revenue.

United States

A country located in North America known for its diverse culture and significant influence in world politics, economy, and culture.

Purchased

Refers to the action of buying goods or services in exchange for money or its equivalent.