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Business, 08.10.2019 04:30 simegustachocolate

Hydro systems engineering associates, inc. provides consulting services to city water authorities. the consulting firm's contribution margin ratio is 15 percent, and its annual fixed expenses are $205,000. the firm's income-tax rate is 30 percent.

(1) calculate the firm's break-even volume of service revenue.
(2) how much before-tax income must the firm earn to make an after-tax net income of $122,000?
(3) what level of revenue for consulting services must the firm generate to earn an after-tax net income of $122,000?
(4) suppose the firm's income-tax rate rises to 20 percent. what will happen to the break-even level of consulting service revenue?

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