Below is the income statement for NUBD Co. for 2020: Sales "Variable costs Contribution margin Fixed costs Profit before tax Income tax (25%) Net income after tax P400,000 (130,000) 270,000 (195,000) 75,000 (18,750) P56.250 ........e .....***... .... ... .....

Below is the income statement for NUBD Co. for 2020: Sales "Variable costs Contribution margin Fixed costs Profit before tax Income tax (25%) Net income after tax P400,000 (130,000) 270,000 (195,000) 75,000 (18,750) P56.250 ........e .....***... .... ... .....

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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Question

Assuming that the amount of fixed costs is expected to remain at P190,000 for 2021. and the sales price per unit and variable costs per unit are also expected to remain constant, how much profit before tax will be produced if the company anticipates that the 2021 sales will be rising to 130% of the 2020 level.

Below is the income statement for NUBD Co. for 2020:
Sales
Variable costs
Contribution margin
Fixed costs
Profit before tax
Income tax (25%)
Net income after tax
P400,000
(130,000)
270,000
(195,000)
75,000
(18,750)
P56.250
.... *..
.......

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