If an organization's fixed costs are $2,400, tax rate is 40%, and contribution margin is $5,200, then its after-tax operating profits are $1,680.

Name: If an organization's fixed costs are $2,400, tax rate is 40%, and contribution margin is $5,200, then its after-tax operating profits are $1,680.
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Quizplus · Accepted Answer

After-tax operating profit = Contribution margin - Fixed costs - Taxes= $5,200 - $2,400 - ($5,200 x 0.40)= $5,200 - $2,400 - $2,080= $1,680

If an Organization's Fixed Costs Are $2,400, Tax Rate Is