4.2 Accounting Agency Corporation provides primarily two kinds of services: accounting and tax. Accounting-related services represent 60% of its revenue, and provide a contribution margin ratio of 30%. Tax services provide 40% of its revenue, and provide a 45% contribution margin ratio. The company's fixed costs are P8,100,000. .02.1d 00.0 Instructions: 1. Calculate the revenue from each type of service that the company must achieve to break-even. 2. The company has a desired net income of P1,800,000. What amount of revenue would the firm earn from tax services if they achieve this goal with the current sales mix?
4.2 Accounting Agency Corporation provides primarily two kinds of services: accounting and tax. Accounting-related services represent 60% of its revenue, and provide a contribution margin ratio of 30%. Tax services provide 40% of its revenue, and provide a 45% contribution margin ratio. The company's fixed costs are P8,100,000. .02.1d 00.0 Instructions: 1. Calculate the revenue from each type of service that the company must achieve to break-even. 2. The company has a desired net income of P1,800,000. What amount of revenue would the firm earn from tax services if they achieve this goal with the current sales mix?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are...
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