Assume Buddy's Farm Supply wants to make $45,000 in net income.If the tax rate is 25%, how much operating income must Buddy have?

Name: Assume Buddy's Farm Supply wants to make $45,000 in net income.If the tax rate is 25%, how much operating income must Buddy have?
Brand: Quizplus
Rating: 4.7 (47 reviews)

Question

Quizplus · Accepted Answer

To find the operating income required to achieve a net income of $45,000 with a tax rate of 25%, we use the formula: Operating Income = Net Income / (1 - Tax Rate). Plugging in the values: Operating Income = $45,000 / (1 - 0.25) = $60,000.

Assume Buddy's Farm Supply Wants to Make $45,000 in Net