Problemyoung corporation has determined the contribution, Ask an Expert

Accounting

Problem:

Young Corporation has determined the contribution margin ratio is 35% and the income tax rate is 40%.

Required:

Question 1: Assume break-even volume in dollars is $1,500,000. What are total fixed costs?

Question 2: Assume Young Corporation wants after-tax net income of $300,000. What volume of sales in dollars is necessary to achieve this net income?

Note: Be sure to show how you arrived at your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164002

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