Falcon Environmental Services, Incorporated provides consulting services to power plants. The consulting firm$$s contribution$-$margin ratio is $20$ percent, and its annual fixed expenses are $$215,000.$ The firm$$s income$-$tax rate is $35$ percent.

Required:

Calculate the firm$$s break$-$even volume of service revenue.

How much before$-$tax income must the firm earn to make an after$-$tax net income of $$130,000?$

What level of revenue for consulting services must the firm generate to earn an after$-$tax net income of $$130,000?$ find break$-$even volume, target before tax revenue, and service revenue!

Answer rating: 100% (QA)

To solve this problem we need to use the following formulas Breakeven volume Fixed expenses Contribu... View the full answer