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Falcon Environmental Services, Incorporated provides consulting services to power plants. The consulting firm s contribution - margin ratio is 2 0 percent, and its annual

Falcon Environmental Services, Incorporated provides consulting services to power plants. The consulting firms contribution-margin ratio is 20 percent, and its annual fixed expenses are $215,000. The firms income-tax rate is 35 percent.

Required:

Calculate the firms break-even volume of service revenue.

How much before-tax income must the firm earn to make an after-tax net income of $130,000?

What level of revenue for consulting services must the firm generate to earn an after-tax net income of $130,000? find break-even volume, target before tax revenue, and service revenue!


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