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?
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A: let number of units be x sales = 30x profit = 0.45*30x = 13.5x
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A: Introduction:- Cost-volume-profit (CVP) analysis is an important and systematic method that provides…
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A: The target sales can be calculated according to the concept of CVP analysis.
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A: Desired units = (Fixed cost + Net income /(1-tax rate))/Contribution margin per unit Total fixed…
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A: Formula: Break even point in units = Fixed cost / Unit contribution margin
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A:
Q: Bluejeans Company has an after-tax profit of P140,000. Bluejeans has a return on sales of 20% and…
A: Before tax profit = P140,000 / 70% = P200,000 Fixed cost = P100,000 Sales = P200,000 / 20% =…
Q: Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income…
A: Given that, total fixed costs of $25,000 company’s contribution margin is 60% the income tax rate…
Q: A company sells its product at P18 per unit. Variable costs are P12 per unit and fixed costs are…
A: Contribution margin = sales - variable costs = 18-12 = P6 per unit Contribution margin ratio =…
Q: For the most recent quarter, Baffle company had an after-tax profit of $62,720 from sales of 225,000…
A: Profit before tax = Profit after tax / ( 1 - tax rate) = 62720/(1-0.30) = $89,600 Contribution…
Q: A product sells for ₱100 per unit and has a contribution margin of ₱45 per unit. Monthly fixed…
A: Unit price = P 100 Contribution per unit = P 45 Fixed cost = P 350,000 Loan amount = P 250,000…
Q: Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income…
A: Calculate contribution margin per box:
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A: Formula used: Units to be sold to earn a target profit = ( Fixed cost + target profit ) / Unit…
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A: We know that the formula to calculate the profit margin is Profit Margin = (Net Income/Sales) * 100…
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A: Break-even point: A breakeven analysis is a calculation of the point at which revenue equals…
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A: Contribution margin- Contribution Margin is defined as selling price minus variable cost, and it…
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A: Advertising expense is a fixed cost. So the total fixed cost will be P130,000 (120,000 + 10,000).
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Q: total sales of $340,000. And a net income after tax of $47,600. Calculate the operating margin if…
A: To calculate the operating margin we need to calculate the operating income.Operating Income is an…
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A: Net profit means the difference between the income and expenses.Net profit after taxes means the…
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A: In order to compute the revenue that is required to achieve a desired after-tax profit of P36,000,…
Q: The following annual information is for Dexter Corporation: Product A Revenue per unit: $20.00…
A: Formula: Unit contribution margin = Selling price - Variable cost per unit
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A: Net income: It is the amount calculated by subtracting total expense from the total revenue of the…
Q: AZ Humanade, Inc. expects to earn P150,000 next year after taxes on sales of P2,200,000. Stanley…
A: We know that under marginal costing Profit = Sales Revenue - Total Variable cost - Total Fixed…
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A: Target profit before tax = P24,000/(100%-40%) Target profit before tax = P24,000/60% Target profit…
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A: Analysis of the target profit helps a company to determine the level of dollar sales required to…
Q: A company manufactures a single product with a selling price of ₱180. Fixed expenses total ₱750,000…
A: Selling price (S) = ₱180 Fixed cost (F) = ₱750000 Let V = Variable cost per unit Breakeven units = n…
Q: The following information is for Nichols Company: Selling price $120 per unit Variable costs $50 per…
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: A company wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be the…
A: Formula: Net income after taxes = Pretax income - Tax amount.
Q: Jack’s Jax has total fixed costs of $25,000. If the company’s contribution margin is 60%, the income…
A: Given,
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Q: A firm’s selling price was ₱45.00 per unit. Fixed expenses totaled ₱150,000, variable expenses were…
A: Given, Selling price = ₱45 per unit Variable expense = ₱20 per unit Fixed cost = ₱150,000
Q: A company manufactures a single product with a selling price of ₱120. Fixed expenses total ₱450,000…
A: Given, Selling price is ₱120. Fixed expenses ₱450,000. Target profit after tax ₱210,000 Break-even…
Q: How many units would NUBD Company need to sell to earn a profit after taxes of P15,000? * The…
A: Solution: Contribution margin per unit = Selling price - Variable costs = P7 - P2 = P5 per unit…
Q: A company manufactures a single product with a selling price of ₱180. Fixed expenses total ₱750,000…
A: Selling price 180.00 Break-even sale units 15000 Break-even sale amount 15000*180…
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A: Gross profit is a profit a company makes after deducting associated with making and selling its…
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A: At Break even point Total sales =Total fixed cost +Total variable cost Revenue =25000000 Total…
Q: For the most recent quarter, Baffle company had an after-tax profit of $62,720 from sales of 225,000…
A: Given: Sales Less: Variable cost (60% of Sales) Contribution margin (40% of…
Q: Holly Farms has sales of S509,600, costs of $448,150, depreciation expense of $36,100, and interest…
A: Here, Sales is $509,600 Costs is $448,150 Depreciation Expense is $36,100 Interest Paid is $12,400…
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?
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- 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 pleaseBluejeans 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)How many units would NUBD Company need to sell to earn a profit after taxes of P15,000?
- 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?If National Co. has calculated that it needs to sell 20,000 units in order to earn an after-tax target profit of P135,000, what were its fixed costs?Information concerning an entity's product is as follows: Sales, P300,000; Variable Cost, P240,000; and Fixed Cost, P40,000. Assuming that the entity increases sales of its product by 20%. What should be the net income from its product?
- 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?Compute the degree of operating leverage that OMS would expect to have as at 31 December 2022 under the following scenarios:(i) Using independent sales agents’ commission at 15%.(ii) Using independent sales agents’ commission at 20%.(iii) Using the company’s own hired sales team.Use operating income before taxes in the above computation.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 company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be the companys pre-tax income in order to have $60,000 after-taxes? A. $88,235 B. $19,200 C. $79,200 D. $143,000Zachia Ltd provides the following data regarding its four product lines: Product Sales mix Weighted average contribution margin per unit (WACMU) Fixed costs Desired profit after tax w Y 60 20 15 $13.7 $71,000 $33,950 The corporate tax rate is 30% Required Calculate the number of units of Product X that must be sold in order to achieve the desired after-tax profit?A company manufactures and sells a single product whose selling price is P500 and whose variable expense is P300 per unit. The company’s monthly fixed expense is P120,000. Required:1. Solve for the unit sales that are required to earn a target profit of P80,000. 2. If the company wants to earn a profit of P200,000, how much should be the sales revenue?
