Answer
Swift Meal Restaurant need to earn revenues of \$1,140,000 in order to achieve target net income (after tax) of $159,600
Work Step by Step
[Note-1]
Target income after tax 159,600
Tax Rate (30%)
Target income before tax = \$ 159,600 / 1 - 0.3 $ = $228,000
[Note-2]
Sales Price per unit 9.5
less: Variable costs per unit 3.8
Contribution margin per unit (9.5 - 3.8) = 5.7
Contribution margin ratio = 5.7 / 9.5 = 60%
