In 2019, X Company's profit function was 0.39R - $87,700, where R is revenue. In 2020,...

Question

Question

In 2019, X Companys profit function was 0.39R - $87,700, where R is revenue. In 2020, the relationship between revenue and v

business accounting

Answer 1

Answer #1



0.39R - $87700	=	Profit
[0.39R - ($87700 - $18417)] X (1-0.30)	=	$ 38,000.00
(0.39R - $69283) X 0.70	=	$ 38,000.00
(0.39R - $69283)	=	$ 54,285.71
0.39R	=	$54285.71 + $69283
0.39R	=	$ 1,23,568.71
R	=	$ 3,16,842.86
R	=	$ 3,16,843	(Rounded off)

Therefore revenue to earn after tax profit of $38,000 is $316,843

Answer 2

Similar Homework Help Questions

In 2019, X Company's profit function was 0.33R - $94,400, where R is revenue. In 2020,...

In 2019, X Company's profit function was 0.33R - $94,400, where R is revenue. In 2020, the relationship between revenue and variable costs will not change, but fixed costs will decrease by $15,104. Assuming a tax rate of 35%, what will revenue have to be in order for X Company to earn $38,000 after taxes in 2020?
In 2019, X Company's profit function was 0.36R - $86,900, where R is revenue. In 2020,...

In 2019, X Company's profit function was 0.36R - $86,900, where R is revenue. In 2020, the relationship between revenue and variable costs will not change, but fixed costs will decrease by $19,987. Assuming a tax rate of 40%, what will revenue have to be in order for X Company to earn $35,200 after taxes in 2020?
In 2019, X Company's profit function was 0.38R - $88,600, where R is revenue. In 2020,...

In 2019, X Company's profit function was 0.38R - $88,600, where R is revenue. In 2020, the relationship between revenue and variable costs will not change, but fixed costs will decrease by $19,492. Assuming a tax rate of 35%, what will revenue have to be in order for X Company to earn $39,700 after taxes in 2020?

In 2019, X Company's profit function was 0.37R - $85,500, where R is revenue. In 2020,...

In 2019, X Company's profit function was 0.37R - $85,500, where R is revenue. In 2020, the relationship between revenue and variable costs will not change, but fixed costs will decrease by $17,100. Assuming a tax rate of 40%, what will revenue have to be in order for X Company to earn $46,400 after taxes in 2020?
In 2019, X Company's profit function was 0.32R - $91,400, where R is revenue. In 2020,...

In 2019, X Company's profit function was 0.32R - $91,400, where R is revenue. In 2020, the relationship between revenue and variable costs will not change, but fixed costs will decrease by $21,936. Assuming a tax rate of 35%, what will revenue have to be in order for X Company to earn $45,600 after taxes in 2020?
In 2019, X Company's profit function was 0.30R - $88,300, where R is revenue. In 2020,...

In 2019, X Company's profit function was 0.30R - $88,300, where R is revenue. In 2020, the relationship between revenue and variable costs will not change, but fixed costs will increase by $15,894. Assuming a tax rate of 30%, what will revenue have to be in order for X Company to earn $35,000 after taxes in 2020?

In 2019, X Company's profit function was 0.35R - $87,100, where R is revenue. In 2020,...

In 2019, X Company's profit function was 0.35R - $87,100, where R is revenue. In 2020, the relationship between revenue and variable costs will not change, but fixed costs will decrease by $19,162. Assuming a tax rate of 40%, what will revenue have to be in order for X Company to earn $31,000 after taxes in 2020? Submit Answer Tries 0/3
In 2019, X Company's profit function was 0.37R - $91,400, where R is revenue. In 2020,...

In 2019, X Company's profit function was 0.37R - $91,400, where R is revenue. In 2020, the relationship between revenue and variable costs will not change, but fixed costs will decrease by $13,710. Assuming a tax rate of 35%, what will revenue have to be in order for X Company to earn $46,200 after taxes in 2020? Submit Answer Tries 0/3
In 2019, X Company's profit function was 0.36R - $90,800, where R is revenue. In 2020,...

In 2019, X Company's profit function was 0.36R - $90,800, where R is revenue. In 2020, the relationship between revenue and variable costs will not change, but fixed costs will increase by $14,528. Assuming a tax rate of 40%, what will revenue have to be in order for X Company to earn $46,700 after taxes in 2020?

In 2019, X Company's profit function was 0.34R - $85,200, where R is revenue. In 2020,...

In 2019, X Company's profit function was 0.34R - $85,200, where R is revenue. In 2020, the relationship between revenue and variable costs will not change, but fixed costs will increase by $17,040. Assuming a tax rate of 35%, what will revenue have to be in order for X Company to earn $35,500 after taxes in 2020?