Hi I need to know how the After Tax income of $120 ,000 is calculated I have the explanation off to the side from the professor, but I can't figure out how the $120 ,000 income tax was calculated to start off Thanks 5 30 19 Dr Darryl E Allen, Ph D DEF Company Fall 2018 Before Tax 850,000 5 50, 800 Target Operating Income (20 of $1,400,000) 280,000 Total fixed Costs 470,000 Target Contribution Margin 750,000 Target Margin room nights (750,000 15,000) Variable costs Price per room 55 Proof Total room revenues ($55 15,000) 825,000 Total costs Variable costs ($5 15000) 75,000 calculate Fixed costs 470,000 545,000 break even Operating income 280,000 9400 rooms After Tax NIBT 400, 5050 Income Tax 120,000 280,000 Tax 30 , 120, 060 Target Operating Income (20 of $1,400,000) Total fixed Costs 470,000 870,000 NIAT 701, 280, 20 Target Contribution Margin Target Margin room nights (870,000 15,000) 58 Variable costs Price per room 63 Proof Total room revenues ($63 15,000) 945,000 Total costs Variable costs ($5 15000) 75,000 Fixed costs 470,000 545,000 NIBT 400,000 Less Tax (30 ) (120,000) NIAT 280,000

Question

Hi   I need to know how the After Tax income of $120 ,000 is calculated  I have the explanation off to the side from the professor, but I can't figure out how the $120 ,000 income tax was calculated to start off   Thanks  5 30  19 Dr  Darryl E  Allen, Ph D DEF Company Fall 2018 Before Tax 850,000   5 50, 800 Target Operating Income (20  of $1,400,000) 280,000 Total fixed Costs 470,000 Target Contribution Margin 750,000 Target Margin room nights (750,000 15,000) Variable costs Price per room 55 Proof  Total room revenues ($55  15,000) 825,000 Total costs Variable costs ($5  15000) 75,000 calculate Fixed costs 470,000 545,000 break even Operating income 280,000 9400 rooms  After Tax NIBT 400, 5050 Income Tax 120,000 280,000 Tax 30 , 120, 060 Target Operating Income (20  of $1,400,000) Total fixed Costs 470,000 870,000 NIAT 701, 280, 20 Target Contribution Margin Target Margin room nights (870,000 15,000) 58 Variable costs Price per room 63 Proof  Total room revenues ($63  15,000) 945,000 Total costs Variable costs ($5  15000) 75,000 Fixed costs 470,000 545,000 NIBT 400,000 Less Tax (30 ) (120,000) NIAT 280,000

Accepted Answer

The Answer is in the image, click to view ...

Question

Hi . I need to know how the After Tax income of $120 ,000 is calculated. I have the explanation off to the side from

Step by Step Solution

Step: 1

Get Instant Access with AI-Powered Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Statistics The Art And Science Of Learning From Data

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question