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

Question

Question

In 2019, X Companys profit function was 0.33R - $94,400, where R is revenue. In 2020, the relationship between revenue and v

business accounting

Answer 1

Answer #1

--Note:
0.33R states that CM ratio is 0.33 or 33% of total revenue

$ 94400 is the original fixed cost

A	After tax earnings	$38,000
B = A/65%	Before tax earnings would be	$58,462
C = $ 94400 - 15104	Total Fixed cost	$79,296
D = B+C	Total Contribution margin required	$137,758
E	Contribtuion margin ratio	0.33
F = D/E	Revenue that is required to be earned	$417,447	Answer

Answer 2

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