Hello teacher please help me this question Ivan Company has a goal or earning $70,000 after-tax income. Ivan would need to pay $20,000 ofincome taxes at the target level of income. Thecontribution margin ratio is 30%. What amount ofdollar sales must be achieved to reach the goal iffixed costs are $36,000?

Step 1: Define Sales of A Target ProfitUnder the cost-volume-profit (CVP) analysis, the sales of a…

Answered: Ivan Company has a goal or earning…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 13E

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Ivan Company has a goal or earning $70,000 after- tax income. Ivan would need to pay $20,000 of income taxes at the target level of income. The contribution margin ratio is 30%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $36,000?