Essay
Lorna Corporation has determined the contribution margin ratio is 35% and the income tax rate is 40%.
Required:
A) Assume break-even volume in dollars is $1,500,000. What are total fixed costs?
B) Assume Lorna Corporation wants after-tax net income of $300,000. What volume of sales in dollars is necessary to achieve this net income?
Correct Answer:
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A)$1,500,000 × 0.35 ...View Answer
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Correct Answer:
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