Eric Church Company is a price-taker and uses a target-pricing approach. Refer to the following information: Production volume 800,000 units per year Market price $30 per unit Desired operating income 15% of total assets Total assets $10,900,000 What is the desired profit for the year?

Eric Church Company is a price-taker and uses a target-pricing approach. Refer to the following information: Production volume 800,000 units per year Market price $30 per unit Desired operating income 15% of total assets Total assets $10,900,000 What is the desired profit for the year?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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What is the desired profit for the year? Accounting question

Eric Church Company is a price-taker and uses a
target-pricing approach. Refer to the following
information:
Production volume 800,000 units per year
Market price $30 per unit
Desired operating income 15% of total assets
Total assets $10,900,000
What is the desired profit for the year?

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A company is making plans for next year, using cost-volume-profit analysis as its planning tool. Next year's sales data about its product are as follows Selling price P60 Variable manufacturing costs per unit 22.50 Variable selling and administrative costs 4.5 Fixed operating costs (60% is manufacturing costs) P159,500 Income tax rate 30% How much should sales be next year if the company wants to earn profit after tax of P23,100, the same amount that it earned last year?