Sales to reach after-Tax Profit -5 pts Lockwood Company currently sells its deadbolt locks for $30 each. The locks have variable cost of $10, and the company’s annual fixed costs are $150,000. The company’s tax rate is 40%. Required: Calculate the number of locks that must be sold to earn an after-tax profit of $24,000.
Sales to reach after-Tax Profit -5 pts Lockwood Company currently sells its deadbolt locks for $30 each. The locks have variable cost of $10, and the company’s annual fixed costs are $150,000. The company’s tax rate is 40%. Required: Calculate the number of locks that must be sold to earn an after-tax profit of $24,000.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4BE
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Sales to reach after-Tax Profit -5 pts
Lockwood Company currently sells its deadbolt locks for $30 each. The locks have variable cost of $10, and the company’s annual fixed costs are $150,000. The company’s tax rate is 40%.
Required: Calculate the number of locks that must be sold to earn an after-tax profit of $24,000.
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