LG produce refrigerators for consumer use. Each refrigerator cost LG RO250 and they sell each with RO400. The company pay a fixed cost 300000 every year. They also have a profit target of 25000 after tax and a profit target of 40000 pre-tax. The tax rate for the year is 40%. How much sales revenue they should make to achieve the targeted pre-tax profit: Select one: O a. RO 806666.667 O b. RO 906666.667 O . RO 966666.667 d. RO 866666.667

LG produce refrigerators for consumer use. Each refrigerator cost LG RO250 and they sell each with RO400. The company pay a fixed cost 300000 every year. They also have a profit target of 25000 after tax and a profit target of 40000 pre-tax. The tax rate for the year is 40%. How much sales revenue they should make to achieve the targeted pre-tax profit: Select one: O a. RO 806666.667 O b. RO 906666.667 O . RO 966666.667 d. RO 866666.667

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 16E

See similar textbooks

Similar questions

1. If the company want to achieve target net income $800,000 and the tax rate is 30%, calculate how many units to be sold to achieve those targets? 2. The owner estimates that if he can spend an additional $75,000 towards sales promotion,sales in unit may increase by 30%. What should Mr. Budi’ decision be?
AB LLC wants to introduce a new refrigerator into the market. The estimated price of each refrigerator is RO 200. The required profit margin is 25% of sales. The target cost for the new refrigerator is: a. RO 150 b. RO 215 c. RO 115 d. RO 250
Togo clothes sells suits. The average selling price is $1000 per suit, variable cost are fixed at $400 !,$ fixed costs are $90000. How many suits must Togo sell to yield after net income of $18000, assuming the tax rate is 40%
B) KTA sells a special type of health food at a price of P16 per pound. Last vegr purchases this food from its supplier at a cost of P12 per pound. The supplier informed KTA that its cost increases and that this product will now be priced at P14 a pound Over the years, KTA established a steady market and intends to pass the cost incregse along to its customers and also add a P1 per unit to the price for additional profit Fixed cost for the year are not expected to change and will remain at P34,000 Income tax rate is 32%. The net income after tax last year was P24,000. 2. If KTA can maintain sales volume at the same level as before with the new price and cost structure, how much profit can it expect for next year? C) A company had a loss of P3 per unit when sales were 40,000 units. When sales were 50,000. units, the company had a loss of P1.60 per unit. 3. Determine the BEP in units.
Please answer the questions provided and do show solutions as possible. Thank you!
Suppose your company sells a 3 pack of lenses that attach to smart phones to improve the quality of pictures people take. You pay 29.95 for each 3 Pack and sell them for 59.95. What is hyour Cost of Goods Sold Perrcentage for htis item? Suppose you sell 8,000 of the 3 pack of lenses described in question 3 above in one year. Your cost on each 3 pack is 29.95 and you sell them for 59.95. If your operating expenses for the year total 144,080, what are your net income and net profit margin percentage?
Acme Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $90 for such a widget and that 50,000 units could be sold each year at this price. If Acme Products requires a 75% return on sales to undertake production, what is the target cost for the new widget? Select one: O a. $31.50. O b. $67.50. OC. $58.50. Od. $22.50.
Bonaventure Manufacturing expects to earn P210,000 next year after taxes. Sales will beP4million. The firm manufactures a combined bookshelf and desk unit used extensively inuniversity dormitories. These units sell for P200 each and a have variable cost per unit of P150.Bonaventure experiences a 30% tax rate.a. Determine the firm’s fixed costs that are expected next year.b. Calculate the firm’s break-even point in both units and pulas.
The Tick Tock Clock Company sells a particular clock for $75. The variable costs are $15 per clock and the breakeven point is 230 clocks. The company expects to sell 280 clocks this year. If the company actually sells 355 clocks, what effect would the sale of additional 75 clocks have on operating income? Explain your answer The sale of an additional 75 dlocks would aller an. operating income by the amount of The total effect would amount to 4
Example: Your company wants to earn $7,000 in after-tax profit selling Frog caps outside the stadium this season. Fixed costs are $6,000 and CMU = $2 per cap. The income tax rate is 30%. 2. How many units do you need to sell to reach the pre-tax profit?
Night Shades Inc. (NSI) manufacturers biotech sunglasses. These sunglasses sell for $150 each, and cost $70 each to produce. Night Shades Inc. has fixed costs of $100,000.a. Calculate Night Shades' Breakeven point.b. how much profit (loss) will Night Shades have if it sells 500 sunglasses? 4,000 sunglasses?c. Night Shades' manager expects an operation profit of $200,000. How many sunglasses must be sold to attain this profit?
A company manufactures and sells a single product whose selling price is P500 and whose variable expense is P300 per unit. The company’s monthly fixed expense is P120,000. Required:1. Solve for the unit sales that are required to earn a target profit of P80,000. 2. If the company wants to earn a profit of P200,000, how much should be the sales revenue?