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

Step 1:Here we can use sales for target profit formula Target profit= $100,000 Formula= (Fixed cost+…

Answered: Meagher Inc. has a contribution margin…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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The break-even point in sales for The Company is $390,000, and the company's contribution margin ratio is 35%. Its income tax rate is 40%. If The Company desires an after-tax operating profit of $84,000, what would total sales have to be?

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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