Calculate that revenue required to earn an after-tax profit, Accounting Basics

+44 141 628 6080
[email protected]

Calculate that revenue required to earn an after-tax profit

Tom and Linda own Hercules Gym. An individual membership costs $100 per month. Tom and Linda estimate variable costs at $35 per member per month and fixed costs at $40,950 per month. They currently have 950 members.

a. How many members does Hercules need to break even?

b. Suppose Hercules pays income taxes that amount to 35% of income. How many members does Hercules need to report after tax profits of $11,375?

c. Using the contribution margin ratio, calculate that revenue required to earn an after-tax profit of $11,375.

d. What is Hercules' margin of safety?

e. What is Hercules' operating leverage?

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Calculate that revenue required to earn an after-tax profit

Reference No:- TGS079295

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Accounting Basics

Q : What portion of the loan should be eliminated

Spokane Corporation owns 95 percent of Seattle Corporation's outstanding common stock. Spokane loaned Seattle $100,000 on September 1, 2008, to be repaid three years later. What portion of the loan should be eliminated in preparation of the Decemb

Q : Income statement and subsidiary

In the consolidated income statement of Push Company and its subsidiary, Shove Corporation, the noncontrolling interest was assigned $24,000 of income for 2009. What amount of net income did Shove report for 2009 if Push owns 80 percent of Shove?

Q : Equivalent units of the weighted average method

Compute the equivalent units of the weighted average method? Beginning inventory, 8000 partially completed Transferred out, 42000 gallons Ending inventory (materials are 10% complete; conversion costs are 20% complete) Started this month, 48000 ga

Q : How monthly profit increase as revenue increases

How does Gina's monthly profit increase as revenue increases? (Note: given that absence of unit-level data, you will need to express Gina's monthly profit in terms of revenue).

Q : Calculate that revenue required to earn an after-tax profit

Using the contribution margin ratio, calculate that revenue required to earn an after-tax profit of $11,375.

Q : Write down the expression for annual after-tax profit

SpringFresh's variable costs equal $0.50 per pound laundered, with fixed costs amounting to $50,000 per month. SpringFresh's income tax rate is 25%. a. Write down the expression for SpringFresh's annual after-tax profit.

Q : At what amount should the new truck be recorded

The used truck had a fair value of $6,000 on the date of the exchange. The exchange has commercial substance. At what amount should the new truck be recorded on Part's books?

Q : What amount should be reported as goodwill

Additionally, the fair value of Wren's identifiable assets on this date was $400,000 in excess of their carrying amount. On Sistar's April 30, 2011, consolidated balance sheet, what amount should be reported as goodwill?

Q : Total periodic pension cost reported in income statement

The net periodic pension cost reported in the income statement for 2011 would be

1929540

Questions
Asked

3,689

Active Tutors

1442516

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Calculate that revenue required to earn an after-tax profit

Reference No:- TGS079295

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : What portion of the loan should be eliminated

Q : Income statement and subsidiary

Q : Equivalent units of the weighted average method

Q : How monthly profit increase as revenue increases

Q : Calculate that revenue required to earn an after-tax profit

Q : Write down the expression for annual after-tax profit

Q : At what amount should the new truck be recorded

Q : What amount should be reported as goodwill

Q : Total periodic pension cost reported in income statement

Nurse is caring for a client who has a pneumothorax

What are the potential consequences of overusing antibiotics

What is the purpose of the uhdds definitions

What is the responsibility of coding professionals

Review the performance measures under each hedis domain

Caring for a client who has sickle cell disease

Which intervention help patient from experiencing heartburn

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Calculate that revenue required to earn an after-tax profit

Reference No:- TGS079295

Recent Questions Asked Accounting Basics

Q : What portion of the loan should be eliminated

Q : Income statement and subsidiary

Q : Equivalent units of the weighted average method

Q : How monthly profit increase as revenue increases

Q : Calculate that revenue required to earn an after-tax profit

Q : Write down the expression for annual after-tax profit

Q : At what amount should the new truck be recorded

Q : What amount should be reported as goodwill

Q : Total periodic pension cost reported in income statement

Asked Questions