In 20A, Domingo presented total variable costs at P687.50; total fixed costs at P6,750,000; sales price per unit P1,250; sold 20,000 units; tax rate at 40%. What is the maximum amount that can be spent on additional advertising at the sales level 22,000 units in 20B if an after tax net income P3,000,000 is desired. P500,000 O P562,500 O P625,000 O None of the above

In 20A, Domingo presented total variable costs at P687.50; total fixed costs at P6,750,000; sales price per unit P1,250; sold 20,000 units; tax rate at 40%. What is the maximum amount that can be spent on additional advertising at the sales level 22,000 units in 20B if an after tax net income P3,000,000 is desired. P500,000 O P562,500 O P625,000 O None of the above

Name: In 20A, Domingo presentedtotal variable costs at P687.50;total fixed
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: In 20A, Domingo presentedtotal variable costs at P687.50;total fixed costs atP6,750,000; sales price perunit P1,250; sold 20,000 units;tax rate at 40%. What is themaximum amount that can bespent on additional advertisingat the sales level 22,000 uni

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Provide step by step solution and answer. Answer number 2 and 3. lack of answer will be given down vote
Sah
Oops, JAC forgot about taxes. Assume a tax rate of 21% Using information and your calculations from xlsx 7 determine the following: 1.) Assuming a desired after tax profit of $16,000, what is the pretax profit JAC has to earn? 2.) How many units does JAC have to sell to earn the desired after tax profit of $16,000. 225 units at $100 per unit Variable cost $20 per unit Contribution margin = Fixed costs = $18,000 Operating income = JAC has a desired profit of $16,000 1.) Calculate the number of units they need to sell to accomplish this. 2.) Calculate the dollar amount of sales they need to accomplish this. 1. Required sale for target profit = ( Fixed cost + Desired profit ) / Contribution marginContribution margin = Sales price - Variable cost = 100 - 20= 80Required sale for target profit = ( 18,000 + 16,000 ) / 80= 34,000 / 80= 425 units The dollar amount of sales for target profit =( Fixed cost + Desired profit ) / Contribution margin ratioContribution margin ratio = Contribution /…
Zachia Ltd provides the following data regarding its four product lines: Product Sales mix Weighted average contribution margin per unit (WACMU) Fixed costs Desired profit after tax w Y 60 20 15 $13.7 $71,000 $33,950 The corporate tax rate is 30% Required Calculate the number of units of Product X that must be sold in order to achieve the desired after-tax profit?
Please help me figure a-e
18. The Disney Company's breakeven sales is P400,000 at a certain level of fixed costs. When such fixed costs are increased by P30,000, the breakeven sales will be P520,000. The variable cost ratio is A. 76.9% B. 75% C. 28.6% D. 25% 19. Variable cost ratio is 60%. While breakeven ratio is 65%. Net income is P42,000. Fixed cost must be A. P 78,000 B. P 22,615 C. P 63,000 OD. P 65,000
For items 22 to 24: The Warner Company sells its only product for P30 and the variable costs amount to P21 per unit. Fixed cost for each year is P270,000. 22. Assuming the desired profit for next year (if all costs and selling price remains the same) is placed at P90,000, what is the margin of safety in units? A. 30,000 B. 20,000 C. 10,000 D. 40,000 23. What will be the projected sales in pesos with such desired profits of P90,000? A. P 900,000 B. P 1,200,000 C. P 300,000 D. P 600,000 24. If instead, the desired profit is 5% of sales, how many units must be sold to achieve such A. 36,000 B. 40,000 C. 25,714 D. 31500
In 20A, Domingo presented total variable costs at P687.50; total fixed costs at P6,750,000; sales price per unit P1,250; sold 20,000 units; tax rate at 40%. What is the required sales amount to equal 20A net income after tax if the company is the entity is to spend P562,500 in 20B?* O P22,250,000 O P24,450,000 O P26,250,000 O None of the above
If the selling price per unit is $80, the variable expense per unit is $40, and total fixed expenses are $250,000, what are the breakeven sales in dollars? A. $3,125 B. $125,000 c. $500,000 D. $166,667
Calculate the breakeven revenue (see Ch 5 p 107) where Total fixed costs are $78,000 and Gross profit is $250,000 and net sales is $375,000
In 20A, Santos presented total variable costs at P687.50; total fixed costs at P6,750,000; sales price per unit P1,250; sold 20,000 units; tax rate at 40%. What is the maximum amount that can be spent on additional advertising at the sales level 22,000 units in 20B if an after tax net income P3,000,000 is desired. P500,000 P562,500 P625,000 None of the above
Compute for what is being asked1. Unit selling price P800 unit variable cost P350 annual sales volume, 620 units, fixed costs and expenses P200,000 per year. Compute the following.a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salee. Operating income (BIT)using the break even salef. Operating income (EBIT) using the annual sales volume