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2 years ago

EB7.

Business

1 answer:

LenaWriter [7]2 years ago

4 0

Answer:

What would be Deltaâ€™s desired pre-tax income?

It can be calculated as follow.

As after tax earning is 64% (100-36(tax rate))of of pretax earning, so

Post tax earning = 44,000/64% = $ 68,750

What would be break-even point in units to reach the income goal of $44,000 after taxes?

This can be calculated by dividing the sum of post tax earning and fixed cost with contribution per unit,

Break even = (68,750 + 15,250)/ (150-90) = 1400 units

What would be break-even point in sales dollars to reach the income goal of $44,000 after taxes?

Break even (in dollars) = sale price * Break even units

= 210,000 dollars

Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.

Sales $ 210,000

Variable cost ($ 126,000)

Gross profit $ 84,000

Fixed Cost ($ 15,250)

Profit before Tax $ 68,750

Tax expense ($ 24,750)

Profit After Tax $ 44,000

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<h3>What is a monopoly?</h3>

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An example of a monopoly is a utility company

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1 year ago

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The correct answer is letter "A": True.

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2 years ago

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Paha777 [63]

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Please check the following explanation

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