Lorna Corporation has determined the contribution margin ratio is 35% and the income tax rate is 40%.

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A). Assume break-even volume in dollars is $1,500,000. What are total fixed costs?

B). Assume Lorna Corporation wants after-tax net income of $300,000. What volume of sales in dollars is necessary to achieve this net income?

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Construction accounting and financial management

ISBN: 978-0135017111

2nd Edition

Authors: Steven j. Peterson

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Posted Date: Oct 25, 2020 08:31 PM

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Lorna Corporation has determined the contribution margin ratio is 35% and the income tax rate is 40%.

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A The tolal fiied cost calulated as ane tolal fiNed cost ... View the full answer

Construction accounting and financial management

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