Hydro Systems Engineering Assoclates, Inc, provides consulting services to city water authorities. The consulting firm's contributionmargin ratio is 20 percent, and its annual fixed expenses are $120,000. The firm's income-tax rate is 25 percent. Required: 1. Calculate the firm's break-even volume of service revenue. 2. How much before-tax income must the firm earn to make an after tax net income of $48,000 ? 3. What level of revenue for consuling services must the firm generate to earn an after-tax net income of $48,000 ? 4. Suppose the firm's income-tax rate rises to 27 percent. What will happen to the break-even level of consulting service revenue? Complete this question by entering your answers in the tabs below: Calculate the firm's break-even volume of service revenue. How much before-tax income must the firm earn to make an altertax net income of $48,000 ? What level of revenue for consulting services must the firm generate to eam an after-tax net. income of 548,000 ? Hydro Systems Engineering Assoclates, Inc, provides consulting services to city water authorities. The consulting firm's coritributionmargin ratio is 20 percent, and its annual fixed expenses are $120,000. The firm's income-tax rate is 25 percent. Required: 1. Calculate the firm's break-even volume of service revenue. 2. How much before-tax income must the firm earn to make an after-tax net income of $48,000 ? 3. What level of revenue for consulting services must the firm generate to eatn an after-tax net income of $48,000 ? 4. Suppose the firm's income-tax rate rises to 27 percent. What will happen to the break-even level of consulting service revenue? Complete this question by entering your answers in the tabs below. Suppose the firm's income-tax rate rises to 27 percent. What will happen to the break even level of consulting service revenue? The break-even level of consulting service tevenue wil not change The break-even lovol of conscilting service tevenoe will inciease. The break-even lewel of consulting service revenue will decrease Required informotion Athietico Inc. manufactures warm-up suits. The company's projected income for the coming year, based on sales of 160,000 units, is as follows: Required: In completing the following requirements, lgnore income taxes. 1. Prepare a CVP graph for Athletico Inc. for the coming yeat, (Use the line tool to draw a single line (Total Soles, Fixed Expense. Total Expense). This line should only contain the two endpoints. Use the point tool (Break Even Point) to plot the Break Even Point. For your groph to grode correctly, you must enter the exoct x ond y coordinates for eoch endpoint. Once oll points hove been plotted, click on the line (not individual points) ond a tool leon will pop up. You can use this to enter exact co-ordinates for your points as needed. To remove a line/point from the graph, click on the line/point and select delete option.) points as needed. To remove a line/point from the graph, click on the line/point and select delete option.)
