2C1G ROBIN COMPANY WANTS TO EARN A 6% RETURN ON SALES AFTER TAXES. T...
205.
CSO: 2C1a
LOS: 2C1g
Robin Company wants to earn a 6% return on sales after taxes. The company’s effective
income tax rate is 40%, and its contribution margin is 30%. If Robin has fixed costs of
$240,000, the amount of sales required to earn the desired return is
a.
$375,000.
b.
$400,000.
c.
$1,000,000.
d.
$1,200,000.