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Author Question: James Corporation gathered the following information: Variable costs$550,000Income tax ... (Read 22 times)

kellyjaisingh

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Question 1

Explain what net income and what taxes can have on a manager's decision?

Question 2

James Corporation gathered the following information:

Variable costs$550,000
Income tax rate40%
Contribution-margin ratio30%

Required:
a.Calculate the fixed costs, assuming breakeven revenue is $2,000,000.
b.Calculate sales volume in dollars to produce an after-tax net income of $150,000. 


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Marked as best answer by kellyjaisingh on Mar 6, 2021

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kellyjaisingh

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


okolip

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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