Management of Paso Company would like to achieve a target profit after taxes of $240,000. The...

  

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Management of Paso Company would like to achieve a target profit after taxes of $240,000. The company's income tax rate is 40 percent. What target profit before taxes is required to achieve the $240,00o after-tax profit desired by management? 2. In addtition, fixed costs are $100,000, and the contribution margin ratio is 40%. What sales are required to achieve this target profit? 1 Rate of taxation 40% Target profit after tax profit before tax $240,000 400000 2 Management of Paso Company would like to achieve a target profit after taxes of $240,000. The company's income tax rate is 40 percent. What target profit before taxes is required to achieve the $240,00o after-tax profit desired by management? 2. In addtition, fixed costs are $100,000, and the contribution margin ratio is 40%. What sales are required to achieve this target profit? 1 Rate of taxation 40% Target profit after tax profit before tax $240,000 400000 2

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