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JoJo Company is considering a new product, Pear. JoJo fixed costs are $200,000. Pear's contribution margin is $200 per unit.

JoJo has a marginal tax rate of 25%. How many units of Pear would JoJo Company have to sell to have after-tax net income of $1,000,000

a. 2,250 units

b. 4,750 units

c. 5,000 units

d. 7,667 units

Accounting Basics, Accounting

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  • Reference No.:- M947637

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