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    sagnik2422's Avatar
    sagnik2422 Posts: 77, Reputation: 1
    Junior Member
    		  
    #1

    Dec 24, 2014, 09:21 PM
    Cost Accounting Question Need Help !
    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
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
    		  
    #2

    Dec 27, 2014, 07:35 PM
    Do the math
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