Casuarina Corporation gathered the following information:
$$\begin{array} { l r }
\text { Variable costs } & \$ 945000 \
\text { Income tax rate } & 40 \% \
\text { Contribution-margin ratio } & 30 \%
\end{array}$$
Required:
a.Compute total fixed costs assuming a break-even volume in dollars of $1 350 000.
b.Compute sales volume in dollars to produce an after-tax net profit of $108 000.
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Question

Casuarina Corporation gathered the following information:
 $$\begin{array} { l r } 
\text { Variable costs } & \$ 945000 \
\text { Income tax rate } & 40 \% \
\text { Contribution-margin ratio } & 30 \%
\end{array}$$ 
Required:
a.Compute total fixed costs assuming a break-even volume in dollars of $1 350 000.
b.Compute sales volume in dollars to produce an after-tax net profit of $108 000.
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Quizplus · Accepted Answer

The Answer of Casuarina Corporation gathered the following information:
 $$\begin{array} { l r } 
\text { Variable costs } & \$ 945000 \
\text { Income tax rate } & 40 \% \
\text { Contribution-margin ratio } & 30 \%
\end{array}$$ 
Required:
a.Compute total fixed costs assuming a break-even volume in dollars of $1 350 000.
b.Compute sales volume in dollars to produce an after-tax net profit of $108 000.
_____________________________________________________________________________________________
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Casuarina Corporation Gathered the Following Information Required: A

Casuarina Corporation Gathered the Following Information Required:
A