Counters and Brown, CPAs, LLP had revenues last month of $100,000 with variable labor costs of $50,000 and an additional variable cost of $4,000 for materials and supplies. Fixed costs are $144,000 for the year. The firm has a 25% tax rate. Based on this information, the firm's net income last month was

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The company had total variable costs amounting to $50,000 + $4,000 = $54,000. Service revenues of $100,000 F1F1F1S1?F1F1F10 variable costs of $54,000 =contribution margin of $46,000. Contribution margin of $46,000 F1F1F1S1?F1F1F10 $12,000 of fixed costs per month ($144,000 per year ÷ 12 months) is equal to operatingprofit of $34,000 last month. At a tax rate of 25%, this would result in taxes of 0.25 × $34,000 = $8,500, leaving total net income of $25,500.

Counters and Brown, CPAs, LLP Had Revenues Last Month of $100,000