Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Accounting Posted 25 Sep 2017 My Price 3.00

variable cost averaging

A hospitality operation has sales revenue of $444,000 with variable cost averaging 42 percent. Fixed costs are $188,482. The owner wants a net income after tax of $48,000 based on a tax rate of 28 percent.

a. Calculate the total additional sales revenue needed to support the desired net income after tax.

b. Calculate the total sales revenue required to cover fixed costs, tax, and net income after tax.

Answers

Maurice Tutor
(5)
Status NEW Posted 25 Sep 2017 07:09 PM My Price 3.00

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