company planned normal operation level (10,000 h) sales revenues andcosts for the 3rd quarter of 2023 are as follows (euros): Total | Product 1 | Product 2 Sales Revenues | 400,000 | 160,000 | 240,000 Direct Materials | 110,000 | 40,000 | 70,000 Direct Labor | 80,000 | 30, 000 | 50,000 Variable Overheads | 120, 000 | 48,000 | 72, 000 Fixed Direct Costs | 3, 500 | 2, 000 | 1,500 Contribution Margin | 86,500 | 40,000 | 46, 500 Fixed Overheads: Depreciation | 25,000 Other | 30,000 Profit Before Taxes | 31,500 a) What are the break- even points for the products and the company? c) How large must the sales be in the third quarter of 2023, so that the profit after taxes would be 50 000 euros/year, if the tax rate is 20 % and the company's contribution margin % is 25 %.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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company planned normal operation level (10,000 h) sales revenues andcosts for the 3rd
quarter of 2023 are as follows (euros): Total | Product 1 | Product 2 Sales Revenues
| 400,000 | 160, 000 | 240, 000 Direct Materials | 110, 000 | 40,000 | 70,000 Direct Labor
| 80,000 | 30,000 | 50,000 Variable Overheads | 120,000 | 48,000 | 72,000 Fixed Direct Costs
| 3,500 | 2,000 | 1,500 Contribution Margin | 86,500 | 40, 000 | 46, 500 Fixed Overheads:
Depreciation | 25,000 Other | 30, 000 Profit Before Taxes | 31, 500 a) What are the break - even
points for the products and the company? c) How large must the sales be in the third quarter
of 2023, so that the profit after taxes would be 50 000 euros/year, if the tax rate is 20 % and
the company's contribution margin % is 25 % .
Transcribed Image Text:company planned normal operation level (10,000 h) sales revenues andcosts for the 3rd quarter of 2023 are as follows (euros): Total | Product 1 | Product 2 Sales Revenues | 400,000 | 160, 000 | 240, 000 Direct Materials | 110, 000 | 40,000 | 70,000 Direct Labor | 80,000 | 30,000 | 50,000 Variable Overheads | 120,000 | 48,000 | 72,000 Fixed Direct Costs | 3,500 | 2,000 | 1,500 Contribution Margin | 86,500 | 40, 000 | 46, 500 Fixed Overheads: Depreciation | 25,000 Other | 30, 000 Profit Before Taxes | 31, 500 a) What are the break - even points for the products and the company? c) How large must the sales be in the third quarter of 2023, so that the profit after taxes would be 50 000 euros/year, if the tax rate is 20 % and the company's contribution margin % is 25 % .
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