A manager is considering a special project that will increase cash sales by $80,000 and increase costs by $30,000. All cash receipts are taxable and all costs are tax deductible. If the tax rate is 30%, what will be the after-tax profit from the special project?

ANS:



Carolina Products has the following product information:

Sales price $25.00 per unit
Variable costs $15.00 per unit
Fixed costs (total) $50,000

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