The desired after-tax profit is US $1.188.000 the past year's amount). Given a 40% tax rate, the pretax equivalent is US $1.980.000 [$1.188.000 - 1 0 - 40)]. Pretax profit equals dollar sales unit sales x US $40). minus total fixed costs, minus total variable costs unit sales x unit variable cost). Hence, the contribution margin sales -variable costs) is equated with the sum of fixed costs and the targeted pretax profit. Unit sales S) equal 540.000. and sales dollars equal US $21,600,000 540,000 units x $40).

A company that sells its single product for US $40 per unit uses cost-volume-profit analysis in its planning. The company's after-tax profit for the past year was US $1,188,000 applying an effective tax rate of 40%. The projected costs for manufacturing and selling its single product in the coming year are listed.

The longest, or critical, path in the network from node A) to node F) is path A- -D-F. All other paths are shorter than path A-C-D-F, so the activities along those paths can be completed before the activities along path A-C-D-F. Thus, the shortest time to complete the project is 8 months 3 + 3 + 2).

Activity times are estimated for normal effort and crash effort. Crashing is the process of adding resources to shorten activity times on the critical path in project scheduling. The network diagram and the corresponding activity cost chart for a manufacturing project at Networks, Inc. are presented below. The numbers in the diagram are the expected times in days) to perform each activity in the project.