3-39 CVP with Income Taxes (LO 3-4) Hunter & Sons sells a single model of...
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3-39 CVP with Income Taxes (LO 3-4)
Hunter & Sons sells a single model of meat smoker for use in the home. The smokers have the following price and cost characteristics:
Sales price
$550 per smoker
Variable costs
$330 per smoker
Fixed costs
$143,000 per month
Hunter & Sons is subject to an income tax rate of 40%.
Required
How many smokers must Hunter& Sons sell every month to break even? How many smokers must Hunter & Sons sell to earn a monthly operating profit of $39,600 after taxes?
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