Question: Problem #2 For 2020 Rocio's Rotelle, Ltd. reported the following revenue and expenses: Sales revenue Fixed costs Variable costs $ 6,200,000 $ 2,546,000 $ 3,844,000
Problem #2 For 2020 Rocio's Rotelle, Ltd. reported the following revenue and expenses: Sales revenue Fixed costs Variable costs $ 6,200,000 $ 2,546,000 $ 3,844,000 a Calculate the breakeven sales for Rocio How much total revenue is required ro generate in order to have $190,000 of pre-tax income How much total revenue is required to generate to attain Income before tax which is 8% of sales d How much total revenue is required ro generate to have Net Income of $272,000 (32% tax rate) How much total revenue is required ro generate to have Net Income which is 3.4% of sales (32% tax rate)
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