Question
A restaurant has sales revenue of $230,000 with average variable cost of 30%. Fixed costs are $140,000. Tax rate is 25%. What is the income
A restaurant has sales revenue of $230,000 with average variable cost of 30%. Fixed costs are $140,000. Tax rate is 25%.
What is the income before tax?
What is the income after tax? If a net income after tax of $67,500 is required, find out the total sales revenue required to cover all costs, tax, and net income after tax.
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Advanced Financial Accounting
Authors: Richard Baker, Valdean Lembke, Thomas King, Cynthia Jeffrey
7th Edition
0073526746, 978-0073526744
