Tax rate = 40%
Profit after tax = $46,700
Profit before tax = Profit after tax/ (1- tax rate)
= 46,700/ (1-0.40)
= 46,700/0.6
= $77,833
Increase in fixed cost = $14,528
In the profit function, 0.36R - $90,800, $90,800 is the fixed cost.
fixed cost will become = 90,800+14,528= $105,328
Profit function = 0.36R - 105,328
77,833 = 0.36R - 105,328
R = $508,781
Hence, revenue of $508,781 is needed to earn profit of $46,700, after taxes.
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