The break-even point in sales for The Company is $390,000, and the company's contribution margin ratio is 35%. Its income tax rate is 40%. If The Company desires an after-tax operating profit of $84,000, what would total sales have to be?
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The break-even point in sales for The Company is $390,000, and the company's contribution margin ratio is 35%. Its income tax rate is 40%. If The Company desires an after-tax operating profit of $84,000, what would total sales have to be?
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- Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?Assuming that the company has a current sales of $120,000 with a 25% margin of safety. Its before-tax return on sales is 6%, and its tax rate is 40%. What is the company's total fixed costs?
- A company, subject to a 25% tax rate, desires to earn P600,000 of after-tax income. How much should the firm add to fixed costs when figuring the sales revenues necessary to produce this income level?19.Bluejeans Company has an after-tax profit of P140,000. Bluejeans has a return on sales of 20% and the tax rate is 30%. The total fixed costs of Bluejeans amounts to P100,000, what is the contribution margin ratio if the sales volume increases to 150%?A firm has fixed costs of P200,000 and variable costs per unit of P6. It plans on selling 40,000 units in the coming year. If the firm pays income taxes on its income at a rate of 40 percent, what sales price must the firm use to obtain an after-tax profit of P24,000 on the 40,000 units?
- Your corporation sells a product for $10 per unit. The variable expenses are $6 per unit, and the fixed expenses total $35,000 per period. By how much will net operating income change if sales are expected to increase by $40,000?Kailyn Company has a 25% margin of safety. Its before-tax return on sales is 6%, and its tax rate is 40%. If fixed costs amount to $320,000, how much sales did Kailyn make for the year?Bluejeans Company has an after-tax profit of P140,000. Bluejeans hás a return on sales of 20% and the tax rate is 30%. The total fixed costs of Bluejeans amounts to P100,000, what is the contribution margin ratio if the sales volume increases to 150%? (use two decimal places, e.g. 82.20%, 55.31% or 0.82, 0.55, these will be counted as correct answers)
- A company has total fixed costs of $200,000. Its product sells for $25 per unit and variable costs amount to $15 per unit. The company wishes to earn an after-tax income of $35,000. Assume that the company has a 30% tax rate. a. How many units must be sold to achieve this after-tax income level? b. What level of pre-tax income must the firm earn to achieve the desired result described above? Can you show your workings pleaseL. Boyd Company's total fixed costs are $130,000 per year. The company's break-even point in sales dollars is $250,000. If sales are $350,000 next year, what will operating income be? (HINT: Use your knowledge of the ‘ratios’ to solve this. Ignore income taxes.)The company sales price is $35 per unit. The variable cost of production bowties is $21 per unit. The company expect to have fixed cost of $70000 next year. The company expect to sell 8,800 bowties next year. Assume no tax What is the operating income?
