Assume the following cost information for Fernandez Company:

What is the number of units that must be sold to earn an after-tax net income of $50,000? (Do not round interim calculations and round the final answer to the nearest unit.)
A) 1,082 units
B) 929 units
C) 650 units
D) 817 units

Question

Assume the following cost information for Fernandez Company:

What is the number of units that must be sold to earn an after-tax net income of $50,000? (Do not round interim calculations and round the final answer to the nearest unit.)
A) 1,082 units 
B) 929 units 
C) 650 units 
D) 817 units

Quizplus · Accepted Answer

Required number of units = [$80,000 + ($50,000 / 0.7)] / ($200 - $60) = 1,082 units

Assume the Following Cost Information for Fernandez Company