Reference no: EM132541008

Hangers Co. manufactures and sells a single product. This product has the following operational data:

Unit sales price                                      $30

Variable manufacturing cost per unit         $17

Fixed manufacturing costs                      $72,000

Variable selling cost per unit                     $1

Fixed selling costs                              $27,0000

Marginal tax rate                                40%

Question 1: What amount of total revenue would be needed to meet an after-tax profit target of $48,000?

Group of answer choices

Option 1: $365,000

Option 2: $630,000

Option 3: $547,500

Option 4: $447,500