A company requires $600,000 in sales to meet its target net income after tax. Its contribution margin is 40%, and fixed costs are $80,000. How much is the target net income, given that its after-tax rate is 70%? a. $160,000 b. $112,000 c. $400,000 d. $48,000
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Help, I know the answer is between b and d but I am not sure which one?, please solve it by yourself
A company requires $600,000 in sales to meet its target net income after tax. Its
contribution margin is 40%, and fixed costs are $80,000. How much is the target net
income, given that its after-tax rate is 70%?
a. $160,000
b. $112,000
c. $400,000
d. $48,000
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