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Assume the Following Information for Richard Company How Many Units Must Be Sold to Achieve the After-Tax

Question 143

Multiple Choice

Assume the following information for Richard Company:
 Selling price per unit $100 Variable cost per unit $80 Total fixed costs $80,000 After-tax net income $40,800 Taxrate 40%\begin{array}{ll}\text { Selling price per unit } & \$ 100 \\\text { Variable cost per unit } & \$ 80 \\\text { Total fixed costs } & \$ 80,000 \\\text { After-tax net income } & \$ 40,800 \\\text { Taxrate } & 40 \%\end{array}
How many units must be sold to achieve the after-tax net income?


A) 6,040
B) 7,400
C) 7,770
D) 7,800

Correct Answer:

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