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Presented is the income statement for Breckinridge Farms for the month of October:
sales: $220,000
cost of goods sold: (114,000)
gross profit: $106,000
operating expenses: (76,000)
operating income: $30,000
Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 30%.
Question A) Rearrange the income statement to the contribution margin format.
Question B) Calculate the company's break even point in terms of sales revenue.
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Campbell, a single taxpayer, earns $192,000 in taxable income and $5,000 in interest from an investment in State of New York bonds. How much federal tax will she owe? What is her average tax rate? What is her effective tax rate?
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