Chelonia Ltd manufactures small robot toys. It plans to introduce a new product, Speedie the robot tortoise. The following activity cost information is available:
It is expected that each unit of Speedie will sell for $23. The direct material cost for unit is $10. Assuming a tax rate of 40%, how many units of Speedie must Chelonia Ltd produce and sell to make an after-tax profit of $12 000?
(For simplicity, assume that you can have partial moves and partial batches - that is, no need to round up the number of batches and the number of moves.)

Question

Chelonia Ltd manufactures small robot toys. It plans to introduce a new product, Speedie the robot tortoise. The following activity cost information is available: 
It is expected that each unit of Speedie will sell for $23. The direct material cost for unit is $10. Assuming a tax rate of 40%, how many units of Speedie must Chelonia Ltd produce and sell to make an after-tax profit of $12 000?
(For simplicity, assume that you can have partial moves and partial batches - that is, no need to round up the number of batches and the number of moves.)

Quizplus · Accepted Answer

The Answer of Chelonia Ltd manufactures small robot toys. It plans to introduce a new product, Speedie the robot tortoise. The following activity cost information is available: 
It is expected that each unit of Speedie will sell for $23. The direct material cost for unit is $10. Assuming a tax rate of 40%, how many units of Speedie must Chelonia Ltd produce and sell to make an after-tax profit of $12 000?
(For simplicity, assume that you can have partial moves and partial batches - that is, no need to round up the number of batches and the number of moves.)

Chelonia Ltd Manufactures Small Robot Toys