The Troy Co. has the following information available: Total fixed costs $400,000 Expected sales (units) 100,000 Selling price per unit $10.00 Contribution margin per unit $7.50 Tax rate 30% What is the after-tax net income

Respuesta :

Answer:

Net operating income= 245,000

Explanation:

Giving the following information:

Total fixed costs $400,000 Expected sales (units) 100,000 Selling price per unit $10.00 Contribution margin per unit $7.50 Tax rate 30%

We need to determine the after tax income:

Contribution margin= 100,000*7.5= 750,000

Fixed costs= (400,000)

EBIT= 350,000

Tax= 350,000*0.3= (105,000)

Net operating income= 245,000