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Jingle Company Wishes to Sell Enough Ornaments to Earn a Profit

Question 131

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Jingle Company wishes to sell enough ornaments to earn a profit of $100,000. If the unit selling price is $10, unit variable cost is $4, and total fixed costs are $80,000, how many units must be sold to earn pre-tax target profit of $100,000? If the current tax rate is 20%, how many ornaments must be sold by Jingle to earn an after-tax profit of $100,000?

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30,000 units (pretax) , 34,167 units (af...

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