Profit Planning with Taxes Rebounder Company produces a rebounding net that can be used for...
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Profit Planning with Taxes Rebounder Company produces a rebounding net that can be used for soccer, baseball and lacrosse. The net sells for $40 per unit. Last year, the company manufactured and sold 20,000 nets to obtain an aftertax profit of $54,000. Variable and fixed costs follow. Variable Costs per Unit Fixed Costs per Year 9 Selling and administrative30,000 . $110,000 Selling and administrative. . Required a. Determine the tax rate the company paid last year b. What unit sales volume is required to provide an after-tax profit of $100,000? c. If the company reduces the unit variable cost by $3 and increases fixed manufacturing cos $22,000, what unit sales volume is required to provide an after-tax profit of $100,000? d. What assumptions are made about taxable income and tax rates in requirements (a) throug
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