Margin of safety ratio. 4. Net operating income ercentage. 10-13 Effect of taxes on break-even and target volume Yosemite Enterprises desires to earn an after-tax income of $150,000 It has fixed costs of $1,000,000. a unit sales price o! $500, and unit variable cosEs of $200. The company is in the 30% tax bracket. 1. How many dol ars of sales revenue must be earned to achieve the after-tax profit of $150.000? 2. How many dollars of revenue would have to byearned to achieve $150.000 of profit, if there had been no inc tax? Dollars of Sales Revenue Needed to Achieve Target Net Income 1. 150,000 $ Target net income 1-Tax rate (a)+(b) . 1-0.30 b. 214,286 $ C. 75,000 Fixed costs d. 2 (c) + (d) Contribution margin ratio (e) () . 130,000.00 f. 2 $ 2. Dollars of Sales Revenue Needed to Achieve 20 Target Net Income 21 22 23 Target net income Fixed costs b. 24 25 26 (a) + (b) Contribution margin ratio (c) (d) C 300.00 300 $ 27 28 29