James Corporation gathered the following information:
$\begin{array}{ll}
\text { Variable costs } & \$ 550,000 \
\text { Income tax rate } & 40 \% \
\text { Contribution-margin ratio } & 30 \%
\end{array}$
Required:
a.Calculate the fixed costs,assuming breakeven revenue is $2,000,000.
b.Calculate sales volume in dollars to produce an after-tax net income of $150,000.

Question

James Corporation gathered the following information:
 $\begin{array}{ll}
\text { Variable costs } & \$ 550,000 \
\text { Income tax rate } & 40 \% \
\text { Contribution-margin ratio } & 30 \%
\end{array}$ 
Required:
a.Calculate the fixed costs,assuming breakeven revenue is $2,000,000.
b.Calculate sales volume in dollars to produce an after-tax net income of $150,000.

Quizplus · Accepted Answer

The Answer of James Corporation gathered the following information:
 $\begin{array}{ll}
\text { Variable costs } & \$ 550,000 \
\text { Income tax rate } & 40 \% \
\text { Contribution-margin ratio } & 30 \%
\end{array}$ 
Required:
a.Calculate the fixed costs,assuming breakeven revenue is $2,000,000.
b.Calculate sales volume in dollars to produce an after-tax net income of $150,000.

James Corporation Gathered the Following Information Required: A

James Corporation Gathered the Following Information Required:
A