Question
A company has sales of $10,000, a variable cost ratio of 30%, and fixed operating costs of $2,000. There is a loan of $10,000 which
A company has sales of $10,000, a variable cost ratio of 30%, and fixed operating costs of $2,000. There is a loan of $10,000 which pays 10% interest, and the company is in the 40% tax rate.
a. Show the companys income statement using the information above.
b. What is the companys dollar sales breakeven?
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The Audit Process Principles Practice And Cases
Authors: Iain Gray, Louise Crawford, Stuart Manson
7th Edition
1473760186, 9781473760189
