A company has fixed costs of $50,000 and a 25% contribution margin ratio. What dollar sales are

Question:

A company has fixed costs of $50,000 and a 25% contribution margin ratio. What dollar sales are necessary to achieve an after-tax net income of $120,000 if the tax rate is 20%?

(a) $800,000,

(b) $680,000, or

(c) $600,000.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamental Accounting Principles Volume 2

ISBN: 9780077716660

21st Edition

Authors: John Wild, Ken Shaw, Barbara Chiappetta

Question Posted: