Business, 08.05.2021 01:00 priceisright11401

After-Tax Profit Targets Olivian Company wants to earn $420,000 in net (after-tax) income next year. Its product is priced at $275 per unit. Product costs include: Direct materials $90 Direct labor $65 Variable overhead $16 Total fixed factory overhead $440,000 Variable selling expense is $14 per unit; fixed selling and administrative expense totals $290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of $420,000.
2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.)
3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2.
4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a $420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 03:30

Joe said “your speech was really great, i loved it.” his criticism lacks which component of effective feedback? a) he did not recognize his ethical obligations b) he did not focus on behavior c) he did not stress the positive d) he did not offer any specifics

Answers: 2

Answer

Business, 22.06.2019 10:30

True or false: a fitted model with more predictors will necessarily have a lower training set error than a model with fewer predictors.

Answers: 2

Answer

Business, 22.06.2019 20:00

Which of the following statements is true of the balanced-scorecard? a. it is a more or less a one-dimensional metric of measuring competitive advantages of a firm. b. it is one of the traditional approaches of measuring firm performance. c. its primary focus is to base a firm's strategic goals entirely on external performance dimensions. d. it attempts to provide a holistic perspective on firm performance.

Answers: 1

Answer

Business, 22.06.2019 20:30

Mordica company identifies three activities in its manufacturing process: machine setups, machining, and inspections. estimated annual overhead cost for each activity is $156,960, $382,800, and $84,640, respectively. the cost driver for each activity and the expected annual usage are number of setups 2,180, machine hours 25,520, and number of inspections 1,840. compute the overhead rate for each activity. machine setups $ per setup machining $ per machine hour inspections $ per inspection

Answers: 1

Answer

You know the right answer?

After-Tax Profit Targets Olivian Company wants to earn $420,000 in net (after-tax) income next year....

Questions