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I need help with number 2, please. Target Profit with Taxes. Management of Paso Company would like to achieve a target profit after taxes of
I need help with number 2, please.
Target Profit with Taxes. Management of Paso Company would like to achieve a target profit after taxes of $240,000. The company's income tax rate is 40 percent. What target profit before taxes is required to achieve the $240,000 after-tax profit desired by management? 2. In addition, fixed costs are $100,000, and the contribution margin ratio is 40%. What sales are required to achieve this target profit? Rate of taxation Target profit after tax profit before tax 40% $240,000 400000Step by Step Solution
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