X Company's profit equation next year is expected to be 0.42R-$11,900, where R is total revenue....

X Company's profit equation next year is expected to be 0.42R-$11,900, where R is total revenue. Assuming a tax rate of 34%, what must next year's revenue be in order for X Company to earn after-tax profits of $28,000?

Expert Solution


	Profit Equation =	= 0.42 R - $ 11,900

	Expecting profit in next year =	= $ 28,000

	Expecting profit befor Tax =	= $ 28,000 X 100 /66

	Expecting profit befor Tax =	$ 42,424


	0.42 R - $ 11,900 =	$ 42,424
	0.42 R = $ 42,424 + $ 11,900
	0.42 R =	$ 54,324
	R = = $ 54,324 / 0.42 =	$ 1,29,343

	Answer = Next Year expected revenue = $ 129,343

ekkarill92 answered 2 years ago

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Question

X Company's profit equation next year is expected to be 0.42R-$11,900, where R is total revenue....

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