Kingman Corp. has been concerned with maintaining a solid annual profit. The company sells a...
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Kingman Corp. has been concerned with maintaining a solid annual profit. The company sells a line of fire extinguishers that are perfect for hometowners, for an average of $10 each. The company has perfected its production process and now produces extinguishers with a variable cost of $4 per extinguisher. Kingsman's annual fixed costs are $92,000. Kingman's tax rate is 40 percent. Calculate the number of extinguishers Kingman must sell to earn an after tax profit of $60,000
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