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Meagher Inc. has a contribution margin ratio of 40% and a breakeven point of $200,000 in sales. If the firm reports a net income of $100,000 before taxes of 50%, what were total sales for the year? a. $450,000 b. $466,667 c. $500,000 d. None of the above

Meagher Inc. has a contribution margin ratio of 40% and a breakeven point of $200,000 in sales. If the firm reports a net income of $100,000 before taxes of 50%, what were total sales for the year? a. $450,000 b. $466,667 c. $500,000 d. None of the above

Principles of Cost Accounting
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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What were total sales for the year?

Meagher Inc. has a contribution margin ratio of 40% and a breakeven point of $200,000 in sales. If the firm reports a net income of $100,000 before taxes of 50%, what were total sales for the year? a. $450,000 b. $466,667 c. $500,000 d. None of the above
Transcribed Image Text:Meagher Inc. has a contribution margin ratio of 40% and a breakeven point of $200,000 in sales. If the firm reports a net income of $100,000 before taxes of 50%, what were total sales for the year? a. $450,000 b. $466,667 c. $500,000 d. None of the above
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