dinarS of (88,C per mont any is 45% th

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question: The Union
Company makes profits after
tax (2500 dinars per month
on sales of (88,000) dinars
per month
The company is taxed at a
rate of 45%, the company
sells its products at a
price of 25 dinars per
unit, of which 20 are a
variable cost.
Required
1- Monthly fixed costs
2 What is the amount of
justice and units in
dinars?
3- What is the financial
leverage at the level of
sales of 6000 units per
month?
4- What is the financial
leverage at the level of
sales of (7000) units per
month?
5- The amount of popular
wind at the sales level of
(30000) units (60000) units
(90000) units
6- What is the effect of a
change in the following
factors on the break-even
quantity?
1- An increase of 6
dinars in the selling price
with the stability of sales
volumes
2- Fixed costs decrease in
January by 200 dinars
3- Reducing variable costs
by 1 dinars and increasing
fixed costs by 6000 dinars
Transcribed Image Text:Fill in the blanks with the appropriate answer by solving the example below Question: The Union Company makes profits after tax (2500 dinars per month on sales of (88,000) dinars per month The company is taxed at a rate of 45%, the company sells its products at a price of 25 dinars per unit, of which 20 are a variable cost. Required 1- Monthly fixed costs 2 What is the amount of justice and units in dinars? 3- What is the financial leverage at the level of sales of 6000 units per month? 4- What is the financial leverage at the level of sales of (7000) units per month? 5- The amount of popular wind at the sales level of (30000) units (60000) units (90000) units 6- What is the effect of a change in the following factors on the break-even quantity? 1- An increase of 6 dinars in the selling price with the stability of sales volumes 2- Fixed costs decrease in January by 200 dinars 3- Reducing variable costs by 1 dinars and increasing fixed costs by 6000 dinars
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