The NUBD Co. sells Product A for P60 each. Variable costs are P36 per unit. Fixed costs are P375,000. a. How much sales in units must be reached to realize a Net income of P102,000 before income taxes. b. How much sales in units must be reached to realize a Net income of P97,500 after income taxes. Tax rate is 35% c. How much sales in pesos must be reached to realize a Net income of 15% of sales. Ignore income taxes.
The NUBD Co. sells Product A for P60 each. Variable costs are P36 per unit. Fixed costs are P375,000. a. How much sales in units must be reached to realize a Net income of P102,000 before income taxes. b. How much sales in units must be reached to realize a Net income of P97,500 after income taxes. Tax rate is 35% c. How much sales in pesos must be reached to realize a Net income of 15% of sales. Ignore income taxes.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The NUBD Co. sells Product A for P60 each. Variable costs are P36 per unit. Fixed costs are P375,000.
a. How much sales in units must be reached to realize a Net income of P102,000 before income taxes.
b. How much sales in units must be reached to realize a Net income of P97,500 after income taxes. Tax rate is 35%
c. How much sales in pesos must be reached to realize a Net income of 15% of sales. Ignore income taxes.
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