Hampton Company, a producer of computer disks, has the following information:

-How many units must be sold to obtain a targeted after-tax income of $6,000?
A) 115,000
B) 42,000
C) 90,000
D) 105,000

Question

Hampton Company, a producer of computer disks, has the following information:
 
-How many units must be sold to obtain a targeted after-tax income of $6,000?
A) 115,000 
B) 42,000 
C) 90,000 
D) 105,000

Quizplus · Accepted Answer

The correct answer is A because the after-tax income is $6,000 and the unit price is $52. Therefore, the number of units that must be sold is $6,000/$52 = 115,384.62, which is rounded up to 115,000.

Hampton Company, a Producer of Computer Disks, Has the Following