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An organization sells a single product for P40 per unit that it purchases for P20. The salespeople receive a salary plus a commission of 5% of sales. Last year the organization's net income (after taxes) was P100,800. The organization is subject to an income tax rate of 30 %. The fixed costs of the organization are Advertising Rent P124,000 60,000 180,000 Salaries Other fixed costs 32,000 Total P396,000 5. The breakeven point in unit sales for the organization is a 8,800 units b. 18,000 units c. 19,800 units d. 22,000 units 6. The organization is considering changing the compensation plan for sales personnel. If the organization is considering changing the compensation plan for sales personnel. If the organization increases the commission to 10% of revenues and reduces salaries by P80,000, what revenues must the organization have to earn the same net income as last year? a. P1,042,000 b. P1,350,000 c. P1,150,000 d. P1,630,000

An organization sells a single product for P40 per unit that it purchases for P20. The salespeople receive a salary plus a commission of 5% of sales. Last year the organization's net income (after taxes) was P100,800. The organization is subject to an income tax rate of 30 %. The fixed costs of the organization are Advertising Rent P124,000 60,000 180,000 Salaries Other fixed costs 32,000 Total P396,000 5. The breakeven point in unit sales for the organization is a 8,800 units b. 18,000 units c. 19,800 units d. 22,000 units 6. The organization is considering changing the compensation plan for sales personnel. If the organization is considering changing the compensation plan for sales personnel. If the organization increases the commission to 10% of revenues and reduces salaries by P80,000, what revenues must the organization have to earn the same net income as last year? a. P1,042,000 b. P1,350,000 c. P1,150,000 d. P1,630,000

FINANCIAL ACCOUNTING
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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An organization sells a single product for P40 per unit that it purchases for P20. The salespeople receive a salary plus a commission of 5% of sales. Last year the organization's net income (after taxes) was P100,800. The organization is subject to an income tax rate of 30%. The fixed costs of the organization are Advertising Rent P124,000 60,000 180,000 Salaries Other fixed costs 32,000 Total P396,000 5. The breakeven point in unit sales for the organization is a 8,800 units c. 19,800 units b. 18,000 units d. 22,000 units 6. The organization is considering changing the compensation plan for sales personnel. If the organization is considering changing the compensation plan for sales personnel. If the organization increases the commission to 10% of revenues and reduces salaries by P80,000, what revenues must the organization have to earn the same net income as last year? a. P1,042,000 b. P1,350,000 c. P1,150,000 d. P1,630,000
Transcribed Image Text:An organization sells a single product for P40 per unit that it purchases for P20. The salespeople receive a salary plus a commission of 5% of sales. Last year the organization's net income (after taxes) was P100,800. The organization is subject to an income tax rate of 30%. The fixed costs of the organization are Advertising Rent P124,000 60,000 180,000 Salaries Other fixed costs 32,000 Total P396,000 5. The breakeven point in unit sales for the organization is a 8,800 units c. 19,800 units b. 18,000 units d. 22,000 units 6. The organization is considering changing the compensation plan for sales personnel. If the organization is considering changing the compensation plan for sales personnel. If the organization increases the commission to 10% of revenues and reduces salaries by P80,000, what revenues must the organization have to earn the same net income as last year? a. P1,042,000 b. P1,350,000 c. P1,150,000 d. P1,630,000
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