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In 2020, X Company's revenue was $198,000, its total variable costs were $118,800, and its fixed costs were $88,900. For 2021, the company assumes that
In 2020, X Company's revenue was $198,000, its total variable costs were $118,800, and its fixed costs were $88,900. For 2021, the company assumes that the relationship between revenue and variable costs will not change but that fixed costs will increase by 20%. With a 40% tax rate, what will revenue have to be in 2021 in order for X Company to earn $39,000 after taxes?
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