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CVP Analysis - After-Tax Income

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One Small Grill Company is a start up with the following profile: Unit selling price = $230; Variable cost per unit = $130; Fixed Costs = $36,000; Tax rate = 40%. How many units should Small Grill sell to achieve an after-tax target income of $6,000?

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Solution Summary

The solution computes units to sell to achieve an after-tax target income of $6,000 using CVP Analysis.

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Contribution Margin = Selling Price - Variable Cost = 230 - 130 = ...

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