SwiftyShop is a gas station that sells 3 types of fuel: Regular Unleaded, Diesel, and Ethanol. The sales mix among the 3 fuel types remains relatively stable. SwiftyShop recorded the following data for the most recent month:
SwiftyShop's fixed expenses are $15,600 / month. SwiftyShop's tax rate is 20%.
If SwiftyShop wants to generate after-tax net income of $14,000 next month, how many gallons of Ethanol will it need to sell? (Round unit contribution margins to the nearest cent. For both intermediate and final calculations, round the number of units up to the next full unit).

Question

SwiftyShop is a gas station that sells 3 types of fuel: Regular Unleaded, Diesel, and Ethanol. The sales mix among the 3 fuel types remains relatively stable. SwiftyShop recorded the following data for the most recent month:
  SwiftyShop's fixed expenses are $15,600 / month. SwiftyShop's tax rate is 20%.
If SwiftyShop wants to generate after-tax net income of $14,000 next month, how many gallons of Ethanol will it need to sell? (Round unit contribution margins to the nearest cent. For both intermediate and final calculations, round the number of units up to the next full unit).

Quizplus · Accepted Answer

The Answer of SwiftyShop is a gas station that sells 3 types of fuel: Regular Unleaded, Diesel, and Ethanol. The sales mix among the 3 fuel types remains relatively stable. SwiftyShop recorded the following data for the most recent month:
  SwiftyShop's fixed expenses are $15,600 / month. SwiftyShop's tax rate is 20%.
If SwiftyShop wants to generate after-tax net income of $14,000 next month, how many gallons of Ethanol will it need to sell? (Round unit contribution margins to the nearest cent. For both intermediate and final calculations, round the number of units up to the next full unit).

SwiftyShop Is a Gas Station That Sells 3 Types of Fuel