Carla Company, which is subject to a 40% income tax rate, projected its income before taxes...
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If Carla wants $5,175,000 in pretax
earning, what is the required level of sales, in dollars?
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Homework Answers
Contribution margin=Sales-Variable cost
=(9,200,000-2,300,000)=$6,900,000
Contribution margin ratio=Contribution margin/Sales
=6,900,000/9,200,000
=0.75
Target Contribution margin=Fixed cost+Target profits
=(3,450,000+5,175,000)=$8625000
Hence required sales=8625000/0.75
=$11,500,000.
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Carla Company, which is subject to a 40% income tax rate,
projected its income before taxes...
Carla Company, which is subject to a 40% income tax rate, projected its income before taxes...
Carla Company, which is subject to a 40% income tax rate,
projected its income before taxes for next year as shown
here:
Sales (184,000 units)
$9,200,000
Cost of sales
Variable costs
2,300,000
Fixed costs
3,450,000
Pretax earning
$3,450,000
If Carla wants after-tax earnings of 30% of sales, what is the
required level of sales in dollars and in units?
Revenue:
$
or
units
Carla Company, which is subject to a 40% income tax rate, projected its income before taxes...
Carla Company, which is subject to a 40% income tax rate, projected its income before taxes for next year as shown here: Sales (184,000 units) $9,200,000 Cost of sales Variable costs 2,300,000 Fixed costs 3,450,000 Pretax earning $3,450,000 If Carla’s net assets are $41,400,000, what amount of revenue must be achieved for Carla to earn a 10% after-tax return on assets? Total Revenue
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Carla Company, which is subject to a 40% income tax rate,
projected its income before taxes for next year as shown
here:
Sales (184,000 units)
$9,200,000
Cost of sales
Variable costs
2,300,000
Fixed costs
3,450,000
Pretax earning
$3,450,000
If Carla wants after-tax earnings of 30% of sales, what is the
required level of sales in dollars and in units?
Revenue:
$
or
units
a. What is Madden's breakeven point in units sold for the
next?
b. If Madden wants $4.5 million in pre-tax profit, what is the
required level of sales in dollars?
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