Zeing Manufacturing pays taxes of 20% on all pre-tax income up to and including $200,000. For pre-tax income above $200,000, the tax rate is 32%. If Zeing Manufacturing's contribution margin ratio is 35% and its fixed costs are $300,000, what level of sales must it achieve to earn a target after-tax income of $300,000?

Answer rating: 100% (QA)

1 Calculate the target beforetax income 2 Determine the sales revenue needed to achieve the target b... View the full answer