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.