If planned net profit after tax is $21 000 and the tax rate is 30%,then planned operating profit before tax would be $27 300.

Question

Quizplus · Accepted Answer

If the planned net profit after tax is $21 000 and the tax rate is 30%, we can calculate the planned operating profit before tax as follows:

Planned Net Profit After Tax = Operating Profit Before Tax - Tax
$21,000 = Operating Profit Before Tax - 0.3(Operating Profit Before Tax)
$21,000 = 0.7(Operating Profit Before Tax)
Operating Profit Before Tax = $30,000

Therefore, the planned operating profit before tax would be $30,000, not $27,300.

If Planned Net Profit After Tax Is $21 000 and the Tax