ACCOUNTING
Exercise 3-33 CVP with Income Taxes
Crest Industries sells a single model of satellite radio receivers for use in the home. The radios have the following price and cost characteristics:
Sales Price …………………………….. $ 80 per radio
Variable costs ………………………. $32 per radio
Fixed costs ……………………………... $360.00 per month
Crest is subject to an income tax rate of 40 percent.
Required
How many receivers must Crest sell earn a monthly operating profit of $90,000 after taxes?
How many receivers must Crest sell earn a monthly operating profit of $90,000 after taxes?
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