Assume the following cost information for Fernandez Company:

What minimum volume of sales dollars is required to earn an after-tax net income of $40,000? (Do not round interim calculations and round the final answer to the nearest dollar.)
A) $135,000
B) $100,000
C) $235,000
D) $225,000

Question

Assume the following cost information for Fernandez Company:

What minimum volume of sales dollars is required to earn an after-tax net income of $40,000? (Do not round interim calculations and round the final answer to the nearest dollar.)
A) $135,000 
B) $100,000 
C) $235,000 
D) $225,000

Quizplus · Accepted Answer

Minimum volume of sales dollars is required = [$90,000 + ($40,000 / 0.6)] / [($180 - $60) / $180] = $235,000

Assume the Following Cost Information for Fernandez Company