Question

A proposed new investment has projected sales of $844,000. variable costs are 53 percent of sales, and fixed costs are $188,080; depreciation is $100,500. assume a tax rate of 30 percent. what is the projected net income? (do not round intermediate calculations and round your answer to the nearest whole number,

e.g., 32.) net income $

Answer 1

Income before tax
844,000−(844,000×0.53+188,080+100,500)=108,100

Net income
108,100−108,100×0.3=75,670