How to fixed costs increase


In 2012, Y Company's revenue was $205,200, its total variable costs were $76,950, and its fixed costs were $89,400. Assume that these revenue and cost relationships continue in 2013, but fixed costs increase by 24%. If the tax rate is 40%, what must revenue be in 2013 in order for Y Company to earn $47,100 after taxes?

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Accounting Basics: How to fixed costs increase
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