Falcon Environmental Services, Incorporated provides consulting services to power plants. The consulting firm's contribution$-$margin ratio is $20$ percent, and its annual fixed expenses are $$150,000.$ The firm's income$-$tax rate is $30$ percent.

Required:

Calculate the firm's break$-$even volume of service revenue.

How much before$-$tax income must the firm earn to make an after$-$tax net income of $$94,500?$

What level of revenue for consulting services must the firm generate to earn an after$-$tax net income of $$94,500?$

Break$-$even volume

Target before tax income

Service revenue