(R) Please answer asap... 9-27 CVP Analysis with Income Taxes Cohen Company produces and sells socks. Variable cost is$6 per pair, and fixed costs for the year total $75,000. The selling price is $10 per pair.Required Calculate the following:1. The breakeven point in units.2. The breakeven point in sales dollars.3. The units required to make a before-tax profit of $40,000.4. The sales dollars required to make a before-tax profit of $35,000.5. The sales, in units and in dollars, required to make an after-tax profit of $25,000 given a tax rate of 30%

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Answered: 9-27 CVP Analysis with Income Taxes…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4BE

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Net Income Planning Midvale Corporation sells a single product for $100 per unit, of which $40 is contribution margin. Fixed costs total $180, 000 and net income before income tax is $48, 000. Determine the following a. The present sales volume in dollars. $Answer 570, 000 b. The break - even point in units. Answer 4, 500 units c. The sales volume in units necessary to attain a net income before income tax of $60, 000 Answer 6, 000 units d. The sales volume in units necessary to attain a net income before income tax equal to 10% of sales revenue. Answer 5, 925 units e. The sales volume in units necessary to attain an after - tax net income of $54, 000 if the tax rate is 40% Answer 6,750 units.
8. The Holiday Card Company, a producer of specialty cards, has asked you to complete several calculations based upon the following information: Income tax rate 30% Selling price per unit $6.60 Variable cost per unit $5.28 Total fixed costs $46,200.00 Required: a. What is the breakeven point in cards? b. What sales volume is needed to earn an after-tax net income of $13,028.40? c. How many cards must be sold to earn an after-tax net income of $18,480?
CVP: Before- and After-Tax Targeted Income Head-Gear Company produces helmets for bicycle racing. Currently, Head-Gear charges a price of $240 per helmet. Variable costs are $96.00 per helmet, and fixed costs are $1,158,000. The tax rate is 25 percent. Last year, 14,000 helmets were sold. Required: 1. What is Head-Gear's net income for last year? 2. What is Head-Gear's break-even revenue? In your computations, round the contribution margin ratio to two decimal places. 3. Suppose Head-Gear wants to earn before-tax operating income of $915,600. How many units must be sold? Round to the nearest whole unit. units 4. Suppose Head-Gear wants to earn after-tax net income of $665,100. How many units must be sold? In your computations, round dollar amounts to the nearest dollar. Round your final answer to the nearest whole unit. units 5. Suppose the income tax rate rises to 35 percent. How many units must be sold for Head-Gear to earn after-tax income of $670,020? Round to the nearest whole…
A3
CVP: Before- and After-Tax Targeted Income Head-Gear Company produces helmets for bicycle racing. Currently, Head-Gear charges a price of $230 per helmet. Variable costs are $92.00 per helmet, and fixed costs are $1,158,000. The tax rate is 25 percent. Last year, 14,000 helmets were sold. Required: 1. What is Head-Gear's net income for last year? 4. Suppose Head-Gear wants to earn after-tax net income of $590,850. How many units must be sold? In your computations, round dollar amounts to the nearest dollar. Round your final answer to the nearest whole unit. 5. Suppose the income tax rate rises to 35 percent. How many units must be sold for Head-Gear to earn after-tax income of $610,740? Round to the nearest whole unit.
CVP: Before- and After-Tax Targeted Income Head-Gear Company produces helmets for bicycle racing. Currently, Head-Gear charges a price of $230 per helmet. Variable costs are $92.00 per helmet, and fixed costs are $1,164,000. The tax rate is 25 percent. Last year, 14,000 helmets were sold. Required: 1. What is Head-Gear's net income for last year? 2. What is Head-Gear's break-even revenue? In your computations, round the contribution margin ratio to two decimal places. 3. Suppose Head-Gear wants to earn before-tax operating income of $823,200. How many units must be sold? Round to the nearest whole unit. units 4. Suppose Head-Gear wants to earn after-tax net income of $586,350. How many units must be sold? In your computations, round dollar amounts to the nearest dollar. Round your final answer to the nearest whole unit. units 5. Suppose the income tax rate rises to 35 percent. How many units must be sold for Head-Gear to earn after-tax income of $606,840? Round to the nearest whole…
Page 2 The NUBD Co. sells Product A for P60 each. Variable costs are P36 per unit. Fixed costs are P375,000. a. How much sales in units must be reached to realize a Net income of P102,000 before income taxes. b. How much sales in units must be reached to realize a Net income of P97,500 after income taxes. Tax rate is 35% c. How much sales in pesos must be reached to realize a Net income of 15% of sales. Ignore income taxes.
Questions 6-10
im.9
A firm sells a single product for $9. Its variable cost per unit is $4 and fixed costs are $120. If the firm has a 25% income tax rate, the number of units that it needs to sell for $30 net income is Select one: a. 288 units. b. 30 units. c. 24 units. d.32 units
Please help me with show all calculation thanku
Sales to reach after-Tax Profit -5 pts Lockwood Company currently sells its deadbolt locks for $30 each. The locks have variable cost of $10, and the company’s annual fixed costs are $150,000. The company’s tax rate is 40%. Required: Calculate the number of locks that must be sold to earn an after-tax profit of $24,000.

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