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  3. in 2018, x company's revenue was $198,000, its tot

In 2018, X Company's revenue was $198,000, its total variable costs were $122,760, and its fixed...

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Accounting

In 2018, X Company's revenue was $198,000, its total variablecosts were $122,760, and its fixed costs were $92,400. In 2019, therelationship between revenue and variable costs will not change,but fixed costs will decrease by $14,784. Assuming a tax rate of35%, what will revenue have to be in order for X Company to earn$41,600 after taxes in 2019?

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Statement of Contribution 2018
Revenue                                1,98,000
Less :Variable Cost                                1,22,760 (122760/198000*100= 62%)
Contribution                                    75,240 (75240/198000*100=38%)
Less:Fixed cost                                  -92,400
Profit                                  -17,160
Calculation of Revenue 2019
Calculation of Profit before tax 2019
Profit after tax                                    41,600
Add: Tax                                    22,400 (64000-41600)
Profit before tax (A)                                    64,000
(41600*100/65=64000)
Add: Fixed Cost (B)                                    77,616
(92400-14784)
Contribution (A+B)                                1,41,616 (38% of Revenue)
Revenue                                3,72,674
(141616*100/38%)

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