The Following Is Allison Corporation's Contribution Format Income Statement for Last

The following is Allison Corporation's contribution format income statement for last month:
$\begin{array}{|l|r|}\hline \text { Sales } & \$ 800,000 \\\hline \text { Less: variable expenses } & \underline{300,000} \\\hline \text { Contribution margin } & 500,000 \\\hline \text { Less: fixed expenses } & \underline{400,000} \\\hline \text { Operating income } & \$ 100,000 \\\hline\end{array}$ The company has no beginning or ending inventories. The company produced and sold 10,000 units last month.


-How many units would the company have to sell to attain after-tax profits of $72,000,assuming it is subject to a 40% income tax rate?

A) 9,440 units.
B) 11,600 units.
C) 10,400 units.
D) 12,000 units.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free