John Company has the following information:
$\begin{array}{ll}
\text { Income taxrate } & 40 \% \
\text { Selling price per unit } & \$ 7.50 \
\text { Variable cost per unit } & \$ 2.50 \
\text { Total fixed costs } & \$ 100,000 \
\text { Target after-tax net income } & \$ 42,000
\end{array}$
Assume the tax rate decreases to 30%.How many fewer units can be sold to retain the same after-tax net income of $42,000?
A) 1,000
B) 2,000
C) 32,000
D) 34,000

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The Answer of John Company has the following information:
$\begin{array}{ll}
\text { Income taxrate } & 40 \% \
\text { Selling price per unit } & \$ 7.50 \
\text { Variable cost per unit } & \$ 2.50 \
\text { Total fixed costs } & \$ 100,000 \
\text { Target after-tax net income } & \$ 42,000
\end{array}$
Assume the tax rate decreases to 30%.How many fewer units can be sold to retain the same after-tax net income of $42,000?
A) 1,000
B) 2,000
C) 32,000
D) 34,000

John Company Has the Following Information Assume the Tax Rate Decreases to 30