Zachary Company wishes to earn after-tax net income of $18,000.Total fixed costs are $84,000, and the contribution margin per unit is $6.00.Zachary's tax rate is 40%.The number of units that must be sold to breakeven is _____.
A)14,000 units
B)17,000 units
C)19,000 units
D)21,500 units

Question

Quizplus · Accepted Answer

Breakeven sales in units = Fixed costs / Contribution margin per unit= $84,000 / $6.00= 14,000 units

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