Morino Corporation sells product W for $125 per unit, thevariable cost per unit

Question

Morino Corporation sells product W for $125 per unit, thevariable cost per unit is $90, the fixed costs are $450,000, andMorino is in the 30% corporate tax bracket. What are the sales(dollars) required to earn a net income (after tax) of$25,000?
a. $1,249,020 b. $674,625 c. $1,734,693 d. $1,904,750 Morino Corporation sells product W for $125 per unit, thevariable cost per unit is $90, the fixed costs are $450,000, andMorino is in the 30% corporate tax bracket. What are the sales(dollars) required to earn a net income (after tax) of$25,000?
a. $1,249,020 b. $674,625 c. $1,734,693 d. $1,904,750

Explanation / Answer

.7(125x-90x-450000)=25000.....where x is the number of unitssold :
.7(35x-450000)=25000 : 24.5x-315000=25000 : 24.5x=340000 :
13877.55 units :
125(13877.55)=$1,734,693
c) $1734693

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