James Corporation Gathered the Following Information Required:
A

Essay

James Corporation gathered the following information:
$$\begin{array} { l r } \text { Variable costs } & \$ 550,000 \\\text { Income taxrate } & 40 \% \\\text { Contribution-margin ratio } & 30 \%\end{array}$$ Required:
a.Compute total fixed costs assuming a breakeven volume in dollars of $2,000,000.
b.Compute sales volume in dollars to produce an after-tax net income of $150,000.