Case study of holiday card company


Holiday card company, a producer of specialty cards, has asked you to complete several calculations:

Income tax rate 30%

Selling price per unit $6.60

Variable cost per unit $5.28

total fixed costs

1. what is the breakeven point in cards?

2. What sales volume is needed to earn an after-tax net income of $13,028.40

3. How many cards must be sold to earn an after-tax net income of $18,480?

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Accounting Basics: Case study of holiday card company
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