profit after taxes will be produced
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
p2
![Belowis an income statem ent for NUBD Company:
P 400,000
(120,000)
Contribution margin P280,000
(200.000)
Profit before taxes P 80,000
(20,000)
P 60.000
Sales
Variable costs
Fixed costs
Income tax
Net income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7e17e68-c388-4c81-a255-7d760e3205d0%2F3f4d6f34-c1bd-4efb-99b9-ac83e120b9a9%2Fb7yypkp_processed.png&w=3840&q=75)
Transcribed Image Text:Belowis an income statem ent for NUBD Company:
P 400,000
(120,000)
Contribution margin P280,000
(200.000)
Profit before taxes P 80,000
(20,000)
P 60.000
Sales
Variable costs
Fixed costs
Income tax
Net income
![Assuming that the fixed costs are expected to remain at P200,000 for the coming year and the
sales price per unit and variable costs per unit are also expected to remain constant, how
much profit after taxes will be produced if the company anticipates sales for the coming year
rising to 125 percent of the current year's level? *](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7e17e68-c388-4c81-a255-7d760e3205d0%2F3f4d6f34-c1bd-4efb-99b9-ac83e120b9a9%2F2khmsl_processed.png&w=3840&q=75)
Transcribed Image Text:Assuming that the fixed costs are expected to remain at P200,000 for the coming year and the
sales price per unit and variable costs per unit are also expected to remain constant, how
much profit after taxes will be produced if the company anticipates sales for the coming year
rising to 125 percent of the current year's level? *
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