Chad Company charges a selling price of $25 per unit for its single product, incurs variable costs of $17 per unit, and total fixed costs of $140,000.
Required:
a. What unit sales volume is necessary to earn a net income before tax of $32,000?
b. What sales volume is necessary to earn a net income after tax of $36,000, assuming a tax rate of 25%?

Question

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The Answer of Chad Company charges a selling price of $25 per unit for its single product, incurs variable costs of $17 per unit, and total fixed costs of $140,000.
Required:
a. What unit sales volume is necessary to earn a net income before tax of $32,000?
b. What sales volume is necessary to earn a net income after tax of $36,000, assuming a tax rate of 25%?

Chad Company Charges a Selling Price of $25 Per Unit