Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A hospitality operation has sales revenue of $575,000 with variable costs averaging 35%. Fixed costs are $288,000. The owner wants a net income after tax

A hospitality operation has sales revenue of $575,000 with variable costs averaging 35%. Fixed costs are $288,000. The owner wants a net income after tax of $75,000. Calculate the total additional sales revenue needed to support the desired net income after tax. Assume a tax rate of 30%

Select one:

a. $607,910

b. $58,100

c. $16,538

d. $32,910

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Reporting And Analysis

Authors: Michael Diamond, James Stice, Earl K. Stice, James D. Stice

5th Edition

0538873019, 978-0538873017

More Books

Students also viewed these Accounting questions

Question

What does the Securities Act of 1933 cover?

Answered: 1 week ago

Question

12.6 Analyze the emerging emphasis on employee recognition.

Answered: 1 week ago