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How much revenue after tax must speedy make to breakeven

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Reference no: EM132507026

Speedy Rent-a-Car's variable costs are 20 percent of revenue. Its annual fixed costs are $12 million. Speedy estimates that it will make 480,000 daily rentals next year. Its income tax rate is 25%.

Question a. How much revenue before tax must Speedy make to breakeven?

Question b. How much revenue after tax must Speedy make to breakeven?

Question c. What is the average daily rental charge for Speedy to make $2 million annual profit after tax?

Reference no: EM132507026

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