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Problem:

The CEO of Madison. Inc. has provided you with the following information for its operation for 2013. Dollar figures are in thousands.

Sales Revenue : $200
Cost of Goods Sold : $120
Total Contribution Margin : $100
Fixed Costs : Manufacturing : $40
Fixed Costs : Selling and Adminstrative : $20
Variable Selling Expense : $20

The tax rate for Newark is 25%. If they want to increase the after-tax income for 2014 by $15, by how much do they have to increase their sales revenue? Assume everything else remains constant (including the price)

20
30
40
50
None

Note: Explain in detail.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164493

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