Explore BrainMass

Explore BrainMass

    Computing Break-even Point and After-tax Target Profit

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Jo Manufacturing Company provides the following data from 2011: 20,000 units were sold for $60 each; total variable expenses were 900,000 and total fixed expenses were $240,000. Jo's income tax rate is 30%.

    What was Jo's break-even point in units?
    How many units would have to be sold to earn an after tax profit of $90,000?
    What net income would you expect in 2012 if sales increase 20%?

    © BrainMass Inc. brainmass.com June 4, 2020, 2:21 am ad1c9bdddf
    https://brainmass.com/business/accounting/computing-breakeven-point-after-tax-target-profit-453698

    Solution Preview

    Jo Manufacturing Company provides the following data from 2011: 20,000 units were sold for $60 each; total variable expenses were 900,000 and total fixed expenses were $240,000. Jo's income tax rate is 30%.
    What was Jo's break-even point in units?
    Break-even point in units = Fixed ...

    Solution Summary

    This solution illustrates how to compute the break-even point and after-tax target profit of a project.

    $2.19

    ADVERTISEMENT