Computing break-even point and sales volume


Response to the following problem:

The Love Company has provided the following information: Income tax rate 30% Selling price per unit $6.60 Variable cost per unit $5.28 Total fixed costs $46,200.00

Required:

A) Compute the break-even point in units

B) Compute the sales volume in units necessary to generate an efter-tax net income of $10,000

C) Compute the sales volume in units necessary to generate an efter-tax net income of $20,000

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Financial Accounting: Computing break-even point and sales volume
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