Andrew Company has the following information: $\begin{array}{ll}
\text { Income tax rate } & 40 \% \
\text { Selling price per unit } & \$ 7.50 \
\text { Variable cost per unit } & \$ 2.50 \
\text { Total fixed costs } & \$ 100,000
\end{array}$ If the tax rate decreases to 30%, _ fewer units can be sold to retain the same net income of $42,000.
A) 1,000 units
B) 32,000 units
C) 34,000 units
D) 2,000 units

Question

Quizplus · Accepted Answer

The Answer of Andrew Company has the following information: $\begin{array}{ll}
\text { Income tax rate } & 40 \% \
\text { Selling price per unit } & \$ 7.50 \
\text { Variable cost per unit } & \$ 2.50 \
\text { Total fixed costs } & \$ 100,000
\end{array}$ If the tax rate decreases to 30%, _ fewer units can be sold to retain the same net income of $42,000.
A) 1,000 units
B) 32,000 units
C) 34,000 units
D) 2,000 units

Andrew Company Has the Following Information If the Tax Rate Decreases to 30%, _ Fewer Units