Remsen Hot Dogs, Inc. has determined that its targeted after-tax earnings should

Question

Remsen Hot Dogs, Inc. has determined that its targeted after-tax earnings should be at least $35,000. The company's estimated tax liability on its income is projected to be $52,000. The industry average contribution margin for hot dog sales is 70%. Based on this information, determine the following. What dollar amount of sales must be achieved to teach the goal if fixed costs are $110,0007 How would your answer in #1 (above) change if taxes were $45,000 instead of $52,000 (assume fixed costs are still #13,000)? How many more or fewer hot dogs must be sold?. If instead the company's revenues per unit are $5, variable costs per unit are $1, what dollar amount of sales would be needed to cam $200,000 after-tax income if fixed costs ate $110,000 and taxes are $35,000? What is the contribution margin ratio in #3 (above)?

Explanation / Answer

question 1 Answer 760000

question 2 answer is 740000

question no 3 Answer 431250

Contribution to get profit of 350000 Income 350000 Add Tax 52000 Add Fixed cost 130000 Contribution to get profit of 350000 532000 Sales =100/70 *contribution 760000

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