1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Jobisdone [24]
3 years ago
13

For the most recent year, Triad Company had fixed costs of $190,000 and variable costs of 75% of total sales revenue, earned $58

,500 of net income after taxes, and had an income tax rate of 35%.
a) Determine the before-tax income.

b) Determine the total contrubution margin

c) Determine the total Sales

d) Determine the breakeven point in dollar sales
Business
1 answer:
poizon [28]3 years ago
8 0

Answer:

The computations are as follows

Explanation:

a)  Before tax income  is

 = After Tax Income ÷ (1 - Tax Rate)

= $58,500 ÷ (1 - 0.35)

= $90,000

b) Total Contribution Margin

Contribution Margin = Fixed Costs + Before Tax Income

= $190,000 + $90,000

= $280,000

c) Calculation of Total Sales

Variable Cost is 75% of Sales

SO, Contribution Margin 25% of Sales

Contribution Margin = $280,000

25% of Sales = $280,000

Sales = $280,000 ÷ 25%

         = $1,120,000

d) Break Even Point in dollars

Break Even Point in dollar = Total Fixed Costs ÷ Contribution Margin percentage

= $190,000 ÷ 25%  

= $760,000

We simply applied the above formula

You might be interested in
If your paycheck was $800 each week, then the nominal value would be less than $800 as we adjust it for inflation. be more than
tia_tia [17]

The answer is : the nominal value would be equal to the $800 face value of the paycheck. The nominal value is the book, par or face value, which in the case of the paycheck is $800.00

4 0
4 years ago
Read 2 more answers
The government offers a subsidy of $5 per unit that increases the profit-maximizing quantity to 200 units. What will the total c
mars1129 [50]

Answer:

An apple, potato, and onion all taste the same if you eat them with your nose plugged

Explanation:

7 0
3 years ago
The risk-free rate is 2.3 percent and the market expected return is 12 percent. What is the expected return of a stock that has
andrew-mc [135]

Answer:

The expected return = 10.739.

Explanation:

Given risk-free rate of return = 2.3 per cent

Market expected return = 12 percent  

The value of beta = 0.87

Use the below formula to find the expected return.

The expected return = Risk free rate of return + Beta × (Market expected return - risk free rate of return)

The expected return = 2.3 + 0.87 (12 – 2.3)

The expected return = 10.739

7 0
3 years ago
The income statement is reconstructed on a cash basis from top to bottom when the ________ method is used to prepare the operati
Elodia [21]

Answer:

Direct method

Explanation:

There are three types of activities in the cash flow statement under the direct method

1. Operating activities: It records those transactions which are related to the cash receipts and cash payments.

Like:

Cash flow from Operating activities  

Collections from customers

Less: Cash paid to suppliers and employees

Less: Interest and taxes paid

Net Cash flow from Operating activities

2. Investing activities: It records those activities which include purchase and sale of the long term assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

4 0
3 years ago
Cash flows from investing activities include all of the following except:
astra-53 [7]

Answer:

(D) Cash proceeds from borrowing

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets. It also includes collections on loans and  Cash advance to borrowers

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

Options A, B, and C are the investing activities whereas option D is financing activities.

5 0
3 years ago
Other questions:
  • The "Brasher doubloon," which was featured in the plot of the Raymond Chandler novel, The High Window, was sold at auction in 20
    5·1 answer
  • If the demand for a product decreases, we would expect a equilibrium price and equilibrium quantity to both decrease. b equilibr
    12·1 answer
  • When the Fed sells securities, the total funds of commercial banks ____ by the market value of the securities sold by the Fed. T
    10·1 answer
  • You are considering investing money in Treasury bills and wondering what the real​ risk-free rate of interest is.​ Currently, Tr
    8·1 answer
  • Which of these is not a major characteristic of a plant asset?
    9·1 answer
  • What does a population possibilities curve represent
    15·1 answer
  • Talia’s Tutus bought a new sewing machine for $55,000 that will be depreciated over 5 years using double-declining-balance depre
    10·1 answer
  • Most foodborne illness outbreaks are caused by
    5·1 answer
  • What is the real value of your savings if the price level increases by 6 percent for the year?
    5·1 answer
  • I need HELP
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!