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Suppose the firm's income-tax rate rises to 45 percent. What will happen to the break-even level of consulting service revenue? Hydro Systems Engineering Associates, Incorporated,
Suppose the firm's income-tax rate rises to 45 percent. What will happen to the break-even level of consulting service revenue? Hydro Systems Engineering Associates, Incorporated, provides consulting services to city water authorities. The consulting firm's contribution-margin ratio is 20 percent, and its annual fixed expenses are $216,000. The firm's income-tax rate is 40 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 $57,600 ? 3. What level of revenue for consulting services must the firm generate to earn an after-tax net income of $57,600 4. Suppose the firm's income-tax rate rises to 45 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 aftertax net income of $57,600 ? What level of revenue for consulting services must the firm generate to earn an after-tax net income of $57,600 ? Note: Do not round intermediate calculations. Round your final answers to the nearest dollar amount
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