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Dunkin Company Manufactures and Sells a Single Product That Sells

Question 102

Multiple Choice

Dunkin Company manufactures and sells a single product that sells for $480 per unit; variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Dunkin company management targets an annual after-tax income of $843,750. The company is subject to a 25% income tax rate. Compute the dollar sales to earn the target after-tax net income.


A) $4,890,000.
B) $5,640,000.
C) $4,327,500.
D) $5,043,750.
E) $5,050,000.

Correct Answer:

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