In 2014 X Company sold 65500 units of its only product The f
In 2014, X Company sold 65,500 units of its only product. The following is budgeted per-unit information for 2015: Fixed overhead and fixed selling and administrative costs are expected to total $383,175. If X Company wants to earn $43,000 after taxes in 2015, and the tax rate is 40%, how many units must it sell?
Solution
Cost for one product will be $5.85
If we calculate the tax, then it will be $153,270
and we want to earn $43,000 also,
From this i have calculated that we need to sell, 99,050 units
