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Text Craft Ltd is analysing a proposed project with the following income and costs characteristics. The depreciation expense amounts to R 60 000. There will be no salvage value. The tax rate is 27%. BASE CASE LOWER BOUND UPPER BOUND Unit Sales 30 000 28 000 33 000 Selling Price/unit R 50.00 R 40.00 R 55.00 Variable cost / unit R 18.00 R 16.00 R 22.00 Fixed costs R 40 000 R 35 000 R 45 000 1.1 Complete (a- n) the following pro forma statement of profit/loss (income statement) for Text Craft Ltd. BASE CASE R WORST CASE BEST CASE R R Sales 1 500 000 a) Variable Costs 540 000 b) h) i) Fixed Costs 40 000 j) Depreciation 60 000 d) k) PBIT 860 000 e) 1) Tax (27%) 232 200 f) m) NPAT 627 800 g) n)

Text Craft Ltd is analysing a proposed project with the following income and costs characteristics. The depreciation expense amounts to R 60 000. There will be no salvage value. The tax rate is 27%. BASE CASE LOWER BOUND UPPER BOUND Unit Sales 30 000 28 000 33 000 Selling Price/unit R 50.00 R 40.00 R 55.00 Variable cost / unit R 18.00 R 16.00 R 22.00 Fixed costs R 40 000 R 35 000 R 45 000 1.1 Complete (a- n) the following pro forma statement of profit/loss (income statement) for Text Craft Ltd. BASE CASE R WORST CASE BEST CASE R R Sales 1 500 000 a) Variable Costs 540 000 b) h) i) Fixed Costs 40 000 j) Depreciation 60 000 d) k) PBIT 860 000 e) 1) Tax (27%) 232 200 f) m) NPAT 627 800 g) n)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Text Craft Ltd is analysing a proposed project with the following income and costs characteristics. The depreciation expense amounts to R 60 000. There will be no salvage value. The tax rate is 27%. BASE CASE LOWER BOUND UPPER BOUND Unit Sales 30 000 28 000 33 000 Selling Price/unit R 50.00 R 40.00 R 55.00 Variable cost / unit R 18.00 R 16.00 R 22.00 Fixed costs R 40 000 R 35 000 R 45 000 1.1 Complete (a- n) the following pro forma statement of profit/loss (income statement) for Text Craft Ltd. BASE CASE R WORST CASE BEST CASE R R Sales 1 500 000 a) Variable Costs 540 000 b) h) i) Fixed Costs 40 000 j) Depreciation 60 000 d) k) PBIT 860 000 e) 1) Tax (27%) 232 200 f) m) NPAT 627 800 g) n)
Transcribed Image Text:Text Craft Ltd is analysing a proposed project with the following income and costs characteristics. The depreciation expense amounts to R 60 000. There will be no salvage value. The tax rate is 27%. BASE CASE LOWER BOUND UPPER BOUND Unit Sales 30 000 28 000 33 000 Selling Price/unit R 50.00 R 40.00 R 55.00 Variable cost / unit R 18.00 R 16.00 R 22.00 Fixed costs R 40 000 R 35 000 R 45 000 1.1 Complete (a- n) the following pro forma statement of profit/loss (income statement) for Text Craft Ltd. BASE CASE R WORST CASE BEST CASE R R Sales 1 500 000 a) Variable Costs 540 000 b) h) i) Fixed Costs 40 000 j) Depreciation 60 000 d) k) PBIT 860 000 e) 1) Tax (27%) 232 200 f) m) NPAT 627 800 g) n)
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