Break-Even in Sales Revenue, Variable-Costing Ratio, Contribution Margin Ratio, Margin of Safety Hammond Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Sales $1,240,000 Less: Variable expenses 706,800 Contribution margin $533,200 Less: Fixed expenses 425,000 Income before taxes $108,200 Less: Income taxes 43,280 Net income $64,920 4. How much sales revenue must Hammond generate to earn a before-tax profit of $130,000? Round your answer to the nearest dollar. How much sales revenue must Hammond generate to earn an after-tax profit of $90,000? Round your answer to the nearest dollar. Question Content Area Prepare a contribution margin income statement to verify the accuracy of your last answer. Round your answers to the nearest dollar. Hammond CompanyContribution Margin Income Statement - - - $- - - - $- - - - $- -
Break-Even in Sales Revenue, Variable-Costing Ratio, Contribution Margin Ratio, Margin of Safety Hammond Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Sales $1,240,000 Less: Variable expenses 706,800 Contribution margin $533,200 Less: Fixed expenses 425,000 Income before taxes $108,200 Less: Income taxes 43,280 Net income $64,920 4. How much sales revenue must Hammond generate to earn a before-tax profit of $130,000? Round your answer to the nearest dollar. How much sales revenue must Hammond generate to earn an after-tax profit of $90,000? Round your answer to the nearest dollar. Question Content Area Prepare a contribution margin income statement to verify the accuracy of your last answer. Round your answers to the nearest dollar. Hammond CompanyContribution Margin Income Statement - - - $- - - - $- - - - $- -
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Break-Even in Sales Revenue, Variable-Costing Ratio, Contribution Margin Ratio, Margin of Safety
Hammond Company runs a driving range and golf shop. The
| Sales | $1,240,000 |
| Less: Variable expenses | 706,800 |
| Contribution margin | $533,200 |
| Less: Fixed expenses | 425,000 |
| Income before taxes | $108,200 |
| Less: Income taxes | 43,280 |
| Net income | $64,920 |
4. How much sales revenue must Hammond generate to earn a before-tax profit of $130,000? Round your answer to the nearest dollar.
How much sales revenue must Hammond generate to earn an after-tax profit of $90,000? Round your answer to the nearest dollar.
Question Content Area
Prepare a contribution margin income statement to verify the accuracy of your last answer. Round your answers to the nearest dollar.
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