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Madden Company projected its income before taxes for next year as shown here Madden is subject to a 40% income tax rate

Madden Company projected its income before taxes for next year as shown here. Madden is subject to a 40% income tax rate. Sales (160,000 units) ....... $8,000,000 Cost of sales Variable costs ......... 2,000,000 Fixed costs .......... $3,000,000 Pretax profit ........... $3,000,000 REQUIRED A. What is Madden’s breakeven point in units sold for the next year? B. If Madden wants $4.5 million in pretax profit, what is the required level of sales in dollars? C. If Madden’s net assets are $36 million, what amount of revenue must be achieved for Madden to earn a 10% after-tax return on assets?

Apr 24 2020 View more View Less

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