Wilson Co.is preparing next period's forecasts.Total fixed costs are expected to be $300,000 and the contribution margin ratio is expected to be 30%.The applicable income tax rate is 25%.
a.Calculate the company's break-even point in dollar sales.
b.If sales are $1,800,000 above the break-even point,what will income be pretax income and after-tax income?

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The Answer of Wilson Co.is preparing next period's forecasts.Total fixed costs are expected to be $300,000 and the contribution margin ratio is expected to be 30%.The applicable income tax rate is 25%.
a.Calculate the company's break-even point in dollar sales.
b.If sales are $1,800,000 above the break-even point,what will income be pretax income and after-tax income?

Wilson CoIs Preparing Next Period's Forecasts