For the most recent year, Triad Company had fixed costs of $240,000 and variable costs of 75%

Question:

For the most recent year, Triad Company had fixed costs of $240,000 and variable costs of 75% of total sales revenue, earned $70,000 of net income after taxes, and had an income tax rate of 35%.

Required

Determine:

1. Before-tax income.

2. Total contribution margin.

3. Total sales.

4. Breakeven point in dollar sales.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...