Hydro Systems Engineering Associates, Inc. provides consulting services to city water authorities. The consulting firms contribution-margin ratio is 15 percent, and its annual fixed expenses are $245,000. The firms income-tax rate is 30 percent.

Required:

1. Calculate the firms break-even volume of service revenue.

2. How much before-tax income must the firm earn to make an after-tax net income of $138,000?

3. What level of revenue for consulting services must the firm generate to earn an after-tax net income of $138,000?

4. Suppose the firms income-tax rate changes to 20 percent. What will happen to the break-even level of consulting service revenue?

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 $138,000? What level of revenue for consulting services must the firm generate to earn an after-tax net income of $138,000? (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Break-even volume Before tax income Service revenue