Business, 22.02.2020 01:45 Travon1418

Hydro Systems Engineering Associates, Inc., provides consulting services to city water authorities. The consulting firm’s contribution-margin ratio is 30 percent, and its annual fixed expenses are $220,000. The firm’s income-tax rate is 45 percent. Required:

1. Calculate the firm’s break-even volume of service revenue.
2. How much before-tax income must the firm earn to make an after-tax net income of $128,000?
3. What level of revenue for consulting services must the firm generate to earn an after-tax net income of $128,000?
4. Suppose the firm’s income-tax rate changes to 35 percent. What will happen to the break-even level of consulting service revenue?

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 05:30, DragonWarrior203

From a business perspective, an information system provides a solution to a problem or challenge facing a firm and represents a combination of management, organization, and technology elements. the organization's hierarchy, functional specialties, business processes, culture, and political interest groups are components of which element of information systems?

Answers: 1

continue

Business, 22.06.2019 05:50, Courtneymorris19

1. all other things equal, according to the law of demand, when the price of a good falls, the demand for the good falls the demand for the good rises the quantity demanded of the good falls the quantity demanded of the good rises 2. when a market is in equilibrium, the quantity of the good that buyers are willing and able to buy exactly equals the quantity that sellers are willing and able to sell cannot be determined is less than the quantity that sellers are willing and able to sell is greater than the quantity that sellers are willing and able to sell 3. which of the following factors does not influence the demand for a good or service? consumer (buyer) income the price of related goods the number of sellers buyer expectations 4. when the number of sellers in a market increases, demand rises supply rises the price rises, all else equal the number of buyers falls

Answers: 1

continue

Business, 22.06.2019 07:30, QueenNerdy889

1 2 3 4 5 6 7 8 9 10time remaining59: 30in the dark game, how does the author develop the central idea that elizabeth van lew was a spymaster during the civil war? 1 2 3 4 5 6 7 8 9 10time remaining59: 30in the dark game, how does the author develop the central idea that elizabeth van lew was a spymaster during the civil war?

Answers: 1

continue

Business, 22.06.2019 08:00, sanociahnoel

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i. e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.

Answers: 1

continue

You know the right answer?

Hydro Systems Engineering Associates, Inc., provides consulting services to city water authorities....