Jack's Jax has total fixed costs of $25,000. If the company's contribution margin is 60%, the income tax rate is 25% and the selling price of a box of Jax is $20, how many boxes of Jax would the company need to sell to produce a net income of $15,000? O A. 5,625 OB. 4,445 OC. 3,750 OD. 3,333
Jack's Jax has total fixed costs of $25,000. If the company's contribution margin is 60%, the income tax rate is 25% and the selling price of a box of Jax is $20, how many boxes of Jax would the company need to sell to produce a net income of $15,000? O A. 5,625 OB. 4,445 OC. 3,750 OD. 3,333
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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Step 1 Introduction
Contribution Margin :— It is the difference between sales revenue and total variable cost.
Contribution Margin Ratio :— It is calculated by dividing total contribution margin by total sales revenue.
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