A small inn has annual fixed costs of $86,000, variable costs of 70 percent of sales...
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A small inn has annual fixed costs of $86,000, variable costs of 70 percent of sales revenue, and a tax rate of 25 percent. The owner wants an after-tax net income of $30,000. a. b. What sales revenue must be achieved to provide $30,000 net income after tax? Prepare a contribution margin income statement to confirm the calculated required sales revenue. A small inn has annual fixed costs of $86,000, variable costs of 70 percent of sales revenue, and a tax rate of 25 percent. The owner wants an after-tax net income of $30,000. a. b. What sales revenue must be achieved to provide $30,000 net income after tax? Prepare a contribution margin income statement to confirm the calculated required sales revenue.
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a To calculate the sales revenue required to achieve an aftertax net income of 30000 we can use the ... View the full answer
Related Book For
Managerial Economics
ISBN: 978-0133020267
7th edition
Authors: Paul Keat, Philip K Young, Steve Erfle
Posted Date:
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