Calculate the company break-even point in dollar sales

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Wilson Co. is preparing next period's forecasts. Total fixed costs are expected to be $300,000 and the contribution margin ratio is expected to be 30%. The applicable income tax rate is 25%.

(a) Calculate the company's break-even point in dollar sales.

(b) If sales are $1,800,000 above the break-even point, what will income be (i) pretax income and (ii) after-tax income?

Reference no: EM13149627

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