Determine the amount of after-tax income

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Reference no: EM131284762

The lanier company incurs 60,000 of annual fixed costs in manufacturing and selling a product that it sells for $15 per unit. The variable costs of manufactuing and selling the product are $9 per unit.

1. Contribution margin per unit $6

Contribution margin ratio is: 40%

Break even point in units is 10,000 units

Break even point in dollars is 150000

2. The Lanier company has 30% income tax rate and its management wants to earn an annual after tac net income of $35000 determine the dollar sales volume that the company must achieve to reach this target income level.

3. Determine the amount of after-tax income that the lanier company would earn from a $420000 sales volume.

Reference no: EM131284762

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