The Holiday Card Company,a producer of specialty cards,has asked you to complete several calculations based upon the following information:
$\begin{array}{lr}
\text { Income taxrate } & 30 \% \
\text { Selling price per unit } & \$ 6.60 \
\text { Variable cost per unit } & \$ 5.28 \
\text { Total fixed costs } & \$ 46,200.00
\end{array}$ Required:
a.What is the breakeven point in cards?
b.What sales volume is needed to earn an after-tax net income of $13,028.40?
c.How many cards must be sold to earn an after-tax net income of $18,480?

Question

The Holiday Card Company,a producer of specialty cards,has asked you to complete several calculations based upon the following information:
 $\begin{array}{lr}
\text { Income taxrate } & 30 \% \
\text { Selling price per unit } & \$ 6.60 \
\text { Variable cost per unit } & \$ 5.28 \
\text { Total fixed costs } & \$ 46,200.00
\end{array}$ Required:
a.What is the breakeven point in cards?
b.What sales volume is needed to earn an after-tax net income of $13,028.40?
c.How many cards must be sold to earn an after-tax net income of $18,480?

Quizplus · Accepted Answer

The Answer of The Holiday Card Company,a producer of specialty cards,has asked you to complete several calculations based upon the following information:
 $\begin{array}{lr}
\text { Income taxrate } & 30 \% \
\text { Selling price per unit } & \$ 6.60 \
\text { Variable cost per unit } & \$ 5.28 \
\text { Total fixed costs } & \$ 46,200.00
\end{array}$ Required:
a.What is the breakeven point in cards?
b.What sales volume is needed to earn an after-tax net income of $13,028.40?
c.How many cards must be sold to earn an after-tax net income of $18,480?

The Holiday Card Company,a Producer of Specialty Cards,has Asked You