Dollars of Sales Revenue Needed to Achieve

Transcribed Image Text: Exercise 10-13
1.
Dollars of Sales Revenue Needed to Achieve
Target Net Income
Target net income
1- Tax rate
a.
150,000
b.
64,286.00
C.
(a) + (b)
214,286
d.
Fixed costs
1,000,000
(c) + (d)
Contribution margin ratio
(e) + (1)
$ 1,214,286
е.
f.
60%
g.
$ 2,023,810
Dollars of Sales Revenue Needed to Achieve
Target Net Income
a.
Target net income
b.
Fixed costs
(a) + (b)
Contribution margin ratio
(c) + (d)
C.
d.
e.
2. Transcribed Image Text: E10-13. Effect of Taxes on Break-Even and Target Volume
LO6
Yosemite Enterprises desires to earn an after-tax income of $150,000. It has fixed costs of $1,000,000, a unit sales price of $500, and unit variable costs of $200. The company is in the 30% tax bracket.
1. How many dollars of sales revenue must be earned to achieve the after-tax profit of $150,000?
2. How many dollars of revenue would have to be earned to achieve $150,000 of profit, if there had been no income tax?

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