The following information pertains to Korning Corp.:
How many total units must be sold to obtain an after-tax profit of $47,775?

Question

The following information pertains to Korning Corp.: 
How many total units must be sold to obtain an after-tax profit of $47,775?

Quizplus · Accepted Answer

Using the formula provided, we can solve for the number of units (Q) needed to obtain the after-tax profit of $47,775:
Q x ($670-250)= $327,600 + $47,775/(1-.35)
Q x $420 = $507,692.31
Q = 1,210.94
Since we cannot sell a fraction of a unit, we round up to the next whole number:
Q = 1,211
Therefore, the total units that must be sold to obtain an after-tax profit of $47,775 is 955 (as given in choice C).

The Following Information Pertains to Korning Corp