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What amount of revenue must be achieved for Madden

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Problem - Breakeven, Target Profit, ROI Target Profit Madden Company, which is subject to a 40% income tax rate, projected its income before taxes for next year as shown here:

Sales (160,000 units) $8,000,000

Cost of sales Variable costs 2,000,000

Fixed costs 3,000,000

Pretax earning $3,000,000

REQUIRED -

A. What is Madden's breakeven point in units sold for the next year?

B. If Madden wants $4.5 million in pretax earning, what is the required level of sales, in dollars?

C. If Madden's net assets are $36 million, what amount of revenue must be achieved for Madden to earn a 10% after-tax return on assets?

D. If Madden wants after-tax earnings of 30% of sales, what is the required level of sales in dollars and in units?

Reference no: EM132627595

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