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Wilmington Company has determined their contribution margin ratio is 35% and their income tax rate is 40%. Assume their break-even volume is $1,500,000. What are
Wilmington Company has determined their contribution margin ratio is 35% and their income tax rate is 40%. Assume their break-even volume is $1,500,000. What are their total fixed costs? Assume Wilmington wants after-tax net income of $300,000. What volume of sales in dollars is necessary to achieve this net income? The answers below are in the form "A:B". For example: if your answer is A = $2 and B= $1, then the letter you would choose below is $2:$1.
A. | $525,000 : $2,562,560 | |
B. | $630,000 : $2,562,560 | |
C. | $630,000 : $2,928,571 | |
D. | $525,000 : $2,928,571 |
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