sagnik2422
Dec 24, 2014, 09:21 PM
The CEO of Madison Inc. has provided you with the following information for its operations for 2013. Dollar figures are in thousands.
Sales Revenue : $200
Cost of Goods Sold : $120
Total Contribution Margin : $100
Fixed Costs: Manufacturing : $40
Fixed Costs: selling and admin : $20
Variable Selling Expense : $20
The tax rate for Newark is 25%. If they want to increase the after tax income for 2014 by $15, by how much do they have to increase their sales revenue?
A) 20 B) 30 C) 40 D) 50
Please show help with steps, is there a formula for this ? I think Target Profit + Fixed / CM Ratio? I am not sure
Sales Revenue : $200
Cost of Goods Sold : $120
Total Contribution Margin : $100
Fixed Costs: Manufacturing : $40
Fixed Costs: selling and admin : $20
Variable Selling Expense : $20
The tax rate for Newark is 25%. If they want to increase the after tax income for 2014 by $15, by how much do they have to increase their sales revenue?
A) 20 B) 30 C) 40 D) 50
Please show help with steps, is there a formula for this ? I think Target Profit + Fixed / CM Ratio? I am not sure