aventure Manufacturing expects to earn P210,000 next year after taxes. Sales will be P4million. The firm manufactures a combined bookshelf and desk unit used extensively in university dormitories. These units sell for P200 each and a have variable cost per unit of P150. Bonaventure experiences a 30% tax rate. a. Determine the firm’s fixed costs that are expecte
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Bonaventure Manufacturing expects to earn P210,000 next year after taxes. Sales will be
P4million. The firm manufactures a combined bookshelf and desk unit used extensively in
university dormitories. These units sell for P200 each and a have variable cost per unit of P150.
Bonaventure experiences a 30% tax rate.
a. Determine the firm’s fixed costs that are expected next year. (4 marks)
b. Calculate the firm’s break-even point in both units and pulas.
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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.Firm M expects to earn $210,000 next year after taxes. Sales will be $4 million. This firm makes combined bookshelf and desk unit for college students. This units sell for $200 each and have a variable cost of $150 per unit. This firm pays 30 percent tax rate on its earnings. Based on the information provided, estimate the firm’s fixed costs expected next year and estimate the firm’s break-even point in units and dollars.AZ Humanade, Inc. expects to earn P150,000 next year after taxes on sales of P2,200,000. Stanley manufactures only one product. The firm’s selling price is P8 a piece and with a variable cost of P2.40 a piece. Tax Rate is currently at 34%. REQUIRED: What are the firm’s expected fixed costs for next year? What is the breakeven point in units?
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