ACC310_Week1_Discussion2

# ACC310_Week1_Discussion2 - \$0 = (\$80 - \$32)X - \$360,000...

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The given statement is incorrect because although a non-profit organization may use a term other than profit, they are still concerned with the information obtained from a CVP analysis. Even if an organization is not seeking profits, they would still need to know that they are receiving enough money to cover their costs.

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a. Profit = (Price - Variable Cost)X - Fixed Cost
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Unformatted text preview: \$0 = (\$80 - \$32)X - \$360,000 \$360,000 = \$48X X = \$360,000 \$48 X = 7,500 units b. After tax profit of \$90,000 is equal to a before tax profit of: \$90,000 (1-.40) = \$150,000 Profit = (Price - Variable Cost)X - Fixed Cost \$150,000 = (\$80 - \$32)X - \$360,000 \$510,000 = \$48X X = \$510,000 \$48 X = 10,625 units...
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## This note was uploaded on 08/14/2011 for the course ACC 310 taught by Professor Parker during the Spring '11 term at Ashford University.

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ACC310_Week1_Discussion2 - \$0 = (\$80 - \$32)X - \$360,000...

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