Basic Corp. produces and sells a single product. The selling price is P25 and the variable costs is P15 per unit.The corporation's fixed costs is P100.000 Der month. Average monthlv sales is 11.000 units.5. If the corporation pays corporate income tax at a rate of 30% and it wants to earn after tax profit of P21,000,it must generate sales of (answer in units)6. How much sales (in pesos) must be generated to earn profit that is 8% of such sales.7. How many units must be sold to earn profit of P2.00 per unit?8. With an average monthly sale of 11,000 units, the corporation's margin of safety (in units) is?9. At the present average monthly sales level of 11,000 units, the corporation's degree of operating leverageis?10. If fixed costs will increase by P20,000, the break-even point in units will increase (decrease) by?11. If variable costs per unit will go up by P5.00, the peso break even sales will increase (decrease) to?12. If selling price will increase to P30, the break-even point in units will increase (decrease) by?

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5. If the corporation pays corporate income tax at a rate of 30% and it wants to earn after tax profit of P21,000, it must generate sales of (answer in units) 6. How much sales (in pesos) must be generated to earn profit that is 8% of such sales. 7. How many units must be sold to earn profit of P2.00 per unit?

5. If the corporation pays corporate income tax at a rate of 30% and it wants to earn after tax profit of P21,000, it must generate sales of (answer in units) 6. How much sales (in pesos) must be generated to earn profit that is 8% of such sales. 7. How many units must be sold to earn profit of P2.00 per unit?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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