Cost Accounting cost behavior with income taxes exercise Facts: A manufacturing company has a contribution margin ratio

of 40% and an income tax rate of 30%. At the breakeven level of operations, total variable cost is $30. At another level of activity, income after income tax expense is $98. Complete the amounts in the two income statements shown below.

BER V CM F I T IAT

R V CM F I T IAT

CMR

cost behavior with income taxes exercise solution BER V CM F I T IAT 50 30 20 20 0 0 0

R V CM F I T IAT

400 240 160 20 140 42 98

CMR VER
1/9/2014

0.4 0.6
202046113.xls.ms_office