Question
Penny Co pays taxes of 25% on all pre-tax income up to and including $180,000. For pre-tax income above $180,000, the tax rate is 28%.
Penny Co pays taxes of 25% on all pre-tax income up to and including $180,000. For pre-tax income above $180,000, the tax rate is 28%. If Penny Co contribution margin ratio is 40% and its fixed costs are $270,000, what level of sales must it achieve to earn a target after-tax income of $270,000?
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College Accounting Chapters 1-12
Authors: Douglas McQuaig
10th Edition
1439038783, 978-1439038789
