Dalton Brothers pay 15% in taxes on income between $1 and $40,000. All income above $40,000 is

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Dalton Brothers pay 15% in taxes on income between $1 and $40,000. All income above $40,000 is taxed at 40%. The firm’s variable costs as a percent of revenues are 60%. Annual fixed costs are $250,000.

REQUIRED

A. What level of sales must the firm achieve to earn income after taxes of $150,000?

B. Prepare a CVP graph for Dalton. Hint: Ignore income taxes.

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Cost Management Measuring Monitoring and Motivating Performance

ISBN: 978-0470769423

2nd edition

Authors: Leslie G. Eldenburg, Susan K. Wolcott

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Question Posted: Jan 26, 2015 02:00 AM

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Dalton Brothers pay 15% in taxes on income between $1 and $40,000. All income above $40,000 is

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A First determine the pretax income necessary to obtain the 150000 ...View the full answer

Cost Management Measuring Monitoring and Motivating Performance

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