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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    -   - -   $- -   -  -   $- -   -  -   $-  -

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 42E: Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller...
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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
   -
  - -
 
 $- -
 
 -  -
 
 $- -
 
 -  -
 
 $-  -

 

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