A store buys a product from a supplier for 679 per unit and

A store buys a product from a supplier for $679 per unit and sells it for $911 per unit. The store has a yearly fixed cost of $89578. How many units must be sold if the store would like to have a yearly after-tax income of $116801? The store has an income tax rate of 30%. (Note: Use 4 decimal places)

Solution

Let, x units be sold

So sales from the product are: 911x

There is 30% tax on this income

SO, after tax we have:0.7*(911x-679x)

Fixed cost=89578

So we need

0.7x*(911-679)=116801

Solving for x gives

x=719.218