Homework Answers
1.
| Target Net income | 150000.00 |
| 1- tax rate | 70% |
| (a) / (b) | 214286 |
| Fixed costs | 1000000.00 |
| ( C) + (d) | 1214286 |
| Contribution margin ratio | 60% |
| (e ) / (f) | 2023810 |
2.
| Target Net income | 150000.00 |
| Fixed costs | 1000000.00 |
| (a) +(b) | 1150000.00 |
| Contribution margin ratio | 60% |
| ( c)/ (d) | 1916666.67 |
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makes a decision that increases fixed costs by $57,000?
Use rounded contribution margin ratio (2 decimal places) for
your calculation.
(d) With the current cost structure, including fixed costs of
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