Engineering Associates, Inc. provides consulting services to commercial
electric utilities. The consulting firmâ€™s contribution-margin ratio is 15% and
its annual fixed expenses are $285,000. The firmâ€™s income tax rate is 30%.
1. Calculate the firmâ€™s break-even volume of
2. How much before tax income must the firm
earn to make an after tax net income of $154,000?
level of revenue for consulting services must the firm generate to earn an
after tax net income of $154,000?