Hydro Systems Engineering Associates, Inc. provides consulting services to city water authorities. The consulting firm's contribution-margin ratio is 20 percent, and its annual fixed expenses are $250,000. The firm's income-tax rate is 35 percent.

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 $140,000?

What level of revenue for consulting services must the firm generate to earn an after-tax net income of $140,000?

Suppose the firm's income-tax rate changes to 25 percent. What will happen to the break-even level of consulting service revenue?