Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Jaques Systems Engineering provides consulting services to city water authorities. A recent income statement revealed variable costs of dollar 740.000 on a sales level of $1,000,000. Yearly fixed costs are $200,000, & the company's income tax rate is 35%.

Required

[A] Compute the firm's break-even volume of service revenue.

[B] Find how much before-tax income must the firm earn to make an after-tax net income of dollar 100,000?

[C] Find, what level of revenue must the firm create to earn an after-tax net income of dollar 100,000?

[D] Assume the company's income tax rate rises to 40%. What will happen to the breakeven level of consulting revenue?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920494

Have any Question? 


Related Questions in Basic Finance

Tell me about the best boss and worst boss you have had in

Tell me about the best boss and worst boss you have had in your career. What made each of them get that designation in your mind?

Identify the two primary types of derivatives specialists

Identify the two primary types of derivatives specialists within a dealer organization ? Discuss the advantages and disadvantages of a centralized versus a decentralized risk management operation of an end user firm ? Ex ...

A simple random sample of 120 men results in a mean of 80

A simple random sample of 120 men results in a mean of 80 beats per minute, and a standard deviation of 11 beats per minute. Based on the sample results, the researcher concludes that the pulse rates of men have a standa ...

J smythe inc manufactures fine furniture the company is

J. Smythe, Inc., manufactures fine furniture. The company is deciding whether to introduce a new mahogany dining room table set. The set will sell for $6,800, including a set of eight chairs. The company feels that sales ...

If a stock has both diversifiable risk and nondiversifiable

If a stock has both diversifiable risk and nondiversifiable risk, which, if any, of these risks are considered in the pricing of the asset? In the context of the CAPM, what is the term represented by E(RM) - Rf? Explain ...

Problems -1 triangular arbitragesuppose you observe the

Problems - 1. Triangular Arbitrage Suppose you observe the following posted exchange rates on the Japanese yen (¥) and South African ran (R) against the US dollar: JPY - ¥97.3702/$ ZAR - R10.1453/$ The posted cross rate ...

Wfm current dividend per share is 107 you expect dividends

Wfm current dividend per share is $1.07. You expect dividends to grow at 5% per year into perpetuity. Wfm beta is .85. The current risk free rate is 2.9%, and the expected return on the market portfolio is 7.4%. Use the ...

1 what are the three primary ways in which scientists share

1. What are the three primary ways in which scientists share their work with the scientific community? 2. Why is peer review so important to science?

The mass m of drops formed by liquid discharging by gravity

The mass M of drops formed by liquid discharging by gravity from a vertical tube is a function of the tube diameter D, liquid density, surface tension, and the acceleration of gravity. Determine the independent dimension ...

Normas cat food of shell knob ships cat food throughout the

Norma's Cat Food of Shell Knob ships cat food throughout the country. Norma has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by two ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen