Calculate the firm break-even volume of service revenue

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Reference no: EM133015183

Problem - Falcon Environmental Services, Inc. provides consulting services to power plants. The consulting firm's contribution-margin ratio is 25 percent, and its annual fixed expenses are $165,000. The firm's income-tax rate is 30 percent.

Required -

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 $105,000?

3. What level of revenue for consulting services must the firm generate to earn an after-tax net income of $105,000?

Reference no: EM133015183

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