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:

Monthly Salary

Fixed regular payment received by an employee from an employer on a monthly basis for their professional services.

Promotion

The act of raising someone to a higher position or rank or the process of encouraging the sale of a product through advertising or discount offers.

Real Estate Contracts

Real Estate Contracts are legally binding agreements regarding the sale, purchase, or lease of property between parties.

Other Projects

Tasks or plans that are distinct from the main project or work being discussed, indicating additional activities or undertakings.