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Compute dollar sales to earn the target after-tax net income

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Question: Apollo Company management (in Exercise) targets an annual after-tax income of $840,000. The company is subject to a 20% income tax rate. Assume that fixed costs remain at $630,000. Compute the

(1) unit sales to earn the target after-tax net income and

(2) dollar sales to earn the target after-tax net income.

Exercise: Apollo Company manufactures a single product that sells for $168 per unit and whose total variable costs are $126 per unit. The company's annual fixed costs are $630,000.

(1) Use this information to compute the company's

(a) contribution margin,

(b) contribution margin ratio,

(c) break-even point in units, and

(d) break-even point in dollars of sales.

Reference no: EM131539062

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