Question
1.Dalton Brother pays 15% in taxes on income between $1 and $40,000. All income above $40,000 is taxed at 40%. The firm's variable costs as
1.Dalton Brother pays 15% in taxes on income between $1 and $40,000. All income above $40,000 is taxed at 40%. The firm's variable costs as a percent of revenues are 60%. Annual fixed costs are $250,000.
i.What level of sales must the firm achieve to earn income after taxes of $150,000?
ii.Prepar a CVP graph for Dalton.
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Ethics in Accounting A Decision Making Approach
Authors: Gordon Klein
1st edition
1118928334, 978-1118928332
