A small inn has annual fixed costs of $86,000, variable costs of 70 percent of sales revenue,
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A small inn has annual fixed costs of $86,000, variable costs of 70 percent of sales revenue, and a tax rate of 25 percent. The owner wants an after-tax net income of $30,000. What sales revenue must be achieved to provide $30,000 net income after tax? Prepare a contribution margin income statement to confirm the calculated required sales revenue.
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Related Book For
Hospitality Management Accounting
ISBN: 9780471092223
8th Edition
Authors: Martin G Jagels, Michael M Coltman
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