PE 2. Baler Company has annual sales of P2.5M with variable expenses of 60 percent of sales and fixed expenses per month of P50,000. By how much will annual sales have to increase f Baler Company to have before-tax profit of 30 percent of sales revenue?

PE 2. Baler Company has annual sales of P2.5M with variable expenses of 60 percent of sales and fixed expenses per month of P50,000. By how much will annual sales have to increase f Baler Company to have before-tax profit of 30 percent of sales revenue?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 5R: Suppose the company has just the opposite news and now expects unit sales for August, September, and...

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

PE 2. Baler Company has annual sales of P2.5M with variable
expenses of 60 percent of sales and fixed expenses per month
of P50,000. By how much will annual sales have to increase for
Baler Company to have before-tax profit of 30 percent of sales
revenue?

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