- This topic has 3 replies, 3 voices, and was last updated 6 years, 7 months ago by .
-
Topic
-
Hi Everyone,
‘A ceramics manufacturer sold cups last year for $7.50 each. Variable costs of manufacturing were $2.25 per unit. The company needed to sell 20,000 cups to break even. Net income was $5,040. This year, the company expects the following changes: sales price per cup to be $9.00; variable manufacturing costs to increase 33.3%; fixed costs to increase 10%; and the income tax rate to remain at 40%. Sales in the coming year are expected to exceed last year’s sales by 1,000 units. How many units does the company expect to sell this year?’
My question is 1) is the net income figure pretax or aftertax? 2) explain your answer for part 1.
Thanks.
Have a great day!FTC.
Viewing 3 replies - 1 through 3 (of 3 total)
Viewing 3 replies - 1 through 3 (of 3 total)
- The topic ‘CVP – Is this pre or after tax?’ is closed to new replies.