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. )

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. )

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