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Question - Egolf glider makes gasoline-powered golf carts. the selling price is 5000 each, and cost are as follows:
cost per unit total
DM 2000
DL 625
Variable OH 325
Variable Selling 50
Annual fixed Production 250,000
annual fixed selling and admin 120,000
Golf Glider's income is taxed at a 40% rate
a. How many golf carts must golf glider sell to earn 600,000 after tax?
b. What level of revenue is needed to yield an after-tax income equal to 20% of sales?
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