2 8 questions 1 company ttt has the following information available total fixed cost 4309541

2.8   Questions

1) Company TTT has the following information available:

Total fixed costs$84,000

Targeted after-tax net income$18,000

Contribution margin per unit$6.20

Tax rate40%

How many units must be sold to achieve the targeted after-tax net income?

A) 14,223

B) 17,853

C) 18,387

D) 21,504

2) The Forever Memories Company has the following information available:

Targeted after-tax net income$67,500

Total fixed costs$370,000

Contribution margin per unit$2

Tax rate40%

How many units should be sold to achieve the targeted after-tax net income?

A) 160,833

B) 167,250

C) 218,750

D) 241,250

3) The SLOW Company has the following information available:

Total fixed costs$350,000

Expected sales(units)100,000

Contribution margin per unit$7.50

Tax rate30%

What is the after-tax net income?

A) $280,000

B) $350,000

C) $400,000

D) $877,500

4) Assume the following information for Marie Company:

Selling price per unit$100

Variable cost per unit$80

Total fixed costs$80,000

After-tax net income$24,000

Tax rate40%

To achieve the targeted after-tax net income, what amount of sales in dollars is necessary?

A) $400,000

B) $520,000

C) $600,000

D) $660,000

5) Assume the following information for Andrew Company:

Selling price per unit$100

Variable cost per unit$80

Total fixed costs$80,000

After-tax net income$40,800

Tax rate40%

How many units must be sold to achieve the after-tax net income?

A) 6,040

B) 7,400

C) 7,770

D) 7,800

6) MYC Company has the following information available:

Income tax rate30%

Selling price per unit$5.00

Variable cost per unit$3.00

Total fixed costs$90,000.00

If MYC Company wants a targeted after-tax net income of $14,000, how many units must be sold?

A) 45,000

B) 52,000

C) 55,000

D) 60,000

7) ADEL Company has the following information:

Income tax rate40%

Selling price per unit$7.50

Variable cost per unit$2.50

Total fixed costs$100,000

Target after-tax net income$42,000

Assume the tax rate decreases to 30%.  How many fewer units can be sold to retain the same after-tax net income of $42,000?

A) 1,000

B) 2,000

C) 32,000

D) 34,000

8) Zachary Company wishes to earn after-tax net income of $18,000.  Total fixed costs are $84,000 and the contribution margin is $6.00 per unit.  Zachary's tax rate is 40%.  The number of units that must be sold to breakeven is ________.

A) 14,000

B) 17,000

C) 19,000

D) 21,500

9) Strongsville Company wishes to earn after-tax net income of $18,000. Total fixed costs are $84,000 and the contribution margin is $6.00 per unit. Strongsville's tax rate is 40%. The number of units that must be sold to earn the targeted net income is ________.

A) 14,000

B) 17,000

C) 19,000

D) 21,500

10) A change in the tax rate will not affect the break-even point.

11) The Love Company has provided the following information:

Income tax rate30%

Selling price per unit$6.60

Variable cost per unit$5.28

Total fixed costs$46,200.00

Required:

A) Compute the break-even point in units.

B) Compute the sales volume in units necessary to generate an after-tax net income of $10,000.

C) Compute the sales volume in units necessary to generate an after-tax net income of $20,000.

12) Young Corporation has determined the contribution margin ratio is 35% and the income tax rate is 40%.

Required:

A) Assume break-even volume in dollars is $1,500,000.  What are total fixed costs?

B) Assume Young Corporation wants after-tax net income of $300,000.  What volume of sales in