Revenue in Order to Earn Some After-Tax Profits Using Profit Equation

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Question

X Company’s profit equation next year is expected to be 0.43R-$12,100, where R is total revenue. Assuming a tax rate of 38%, what must next year’s revenue be in order for X Company to earn after-tax profits of $28,000?

Summary: This question belongs to accounting and discusses about a company’s cash flows and to calculate revenue in order to earn some after-tax profits using profit equation.

Total word count: 5

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