Example: Your company wants to earn $7,000 in after-tax profit selling Frog caps outside the stadium this season. Fixed costs are $6,000 and CMU = $2 per cap. The income tax rate is 30%. 2. How many units do you need to sell to reach the pre-tax profit?
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Example: Your company wants to earn $7,000 in after-tax profit selling Frog caps outside the stadium this season. Fixed costs are $6,000 and CMU = $2 per cap. The income tax rate is 30%. 2. How many units do you need to sell to reach the pre-tax profit?
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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.1. ABC Taxi has an average fixed cost of $8,000 a year for each car. Each mile driven has variable cost $.40 and collect fares of $.60. How many miles a year does each car have to travel before making profit? a. ABC company is contemplating adding a new line of product, which will require leasing new equipment for a monthly payment of $12,000. Variable costs would be $15.00 per product, and selling price per product is $40. What would be profit or loss if business sell 600 of these products? b. If 800 quantity of products can be sold, and a profit target is $10,000, what price should be charged for each product?ABC Audio sells headphones and would like to earn an after-tax profit of $400 every week. Each setof headphones incurs variable cost of $5 and sells for $10. Rent and other fixed costs are $200 perweek; the income tax rate is 20%. How many headphones must ABC sell per week to meet its profitgoal?
- Togo clothes sells suits. The average selling price is $1000 per suit, variable cost are fixed at $400 !,$ fixed costs are $90000. How many suits must Togo sell to yield after net income of $18000, assuming the tax rate is 40%Give what is being asked?1. If total cost and Expenses is P300,000 at breakeven point how much is the total sales?2. The unit selling price of a product is P20, if the total sales for the month is 5,000 units and this is the breakeven point sales volume.Answer question A-C with yes or no.a. Will there be an income in case 6,000 units were sold?b. Will be there be an income in case 4,000 units were sold?.c. If additional units were sold after selling 5,000 units will there be an income?d. How much is the total cost and expenses if 5,000 units were sold?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?
- Currently, Sweet Treats Bakery sells 1,200 cupcakes per month. The owners would like to increase net income above what is currently earned. Fixed costs are $1,500 per month and their contribution margin is $3 per cupcake. What would be a reasonable net income goal? O $1,800 O $2,600 O $2,100 O $5,600Oops, JAC forgot about taxes. Assume a tax rate of 21% Using information and your calculations from xlsx 7 determine the following: 1.) Assuming a desired after tax profit of $16,000, what is the pretax profit JAC has to earn? 2.) How many units does JAC have to sell to earn the desired after tax profit of $16,000. 225 units at $100 per unit Variable cost $20 per unit Contribution margin = Fixed costs = $18,000 Operating income = JAC has a desired profit of $16,000 1.) Calculate the number of units they need to sell to accomplish this. 2.) Calculate the dollar amount of sales they need to accomplish this. 1. Required sale for target profit = ( Fixed cost + Desired profit ) / Contribution marginContribution margin = Sales price - Variable cost = 100 - 20= 80Required sale for target profit = ( 18,000 + 16,000 ) / 80= 34,000 / 80= 425 units The dollar amount of sales for target profit =( Fixed cost + Desired profit ) / Contribution margin ratioContribution margin ratio = Contribution /…A manufacturer produces gizmos at a cost of P5 each. The manufacturer computes that if each gizmo sells for x pesos, (15 – x) gizmos will be sold. What is the manufacturer's profit function a(x)? What price x should the manufacturer charge to maximize profit? (Hint: If the profit function is concave, the maximum point is the point where the slope is zero.)
- The NUBD Co. Sells Product A for P60 each. Variable costs are P36 per unit. Fixed costs are P375,000. 1. How much sales in units must be reached to realize a Net Income of P102,000 before income taxers? 2. How much sales in units must be reached to realize a Net Income of P97,500 after income taxes. Tax rate is 35%? 3. How much sales in pesos must be reached to realize a Net Income of 15% of sales? Ignore income taxes.ABC Taxi has an average fixed cost of $8,000 a year for each car. Each mile driven has variable cost $.40 and collect fares of $.60. How many miles a year does each car have to travel before making profit?What is the breakeven points in units? UrTurn sells its products at P80 per unit with the unit variable cost of P55. Its fixed cost is P81,000. How many units must be sold to achieve the following (tax rate is at 40%)
