Twenty Twenty One Corp. Income Statement For the month ended December 31, 2020 Sales (P10/unit) 900,000 Beginning Inventory 125,000 Variable Cost of Goods Manufactured 400,000 Total Goods Available for Sale 525,000 Ending Inventory 75,000 Variable Cost of Goods Sold 450,000 Variable Selling Expense 90,000 540,000 Contribution Margin 360,000 Manufacturing 240,000 Selling and Administrative 90,000 330,000 Operating Profit 30,000 During December 2020, the entity manufactured a total of 80,000 units Required: Assuming a tax rate of 25%, how much sales is needed to generate an after-tax profit of P90,000?
Twenty Twenty One Corp. Income Statement For the month ended December 31, 2020 Sales (P10/unit) 900,000 Beginning Inventory 125,000 Variable Cost of Goods Manufactured 400,000 Total Goods Available for Sale 525,000 Ending Inventory 75,000 Variable Cost of Goods Sold 450,000 Variable Selling Expense 90,000 540,000 Contribution Margin 360,000 Manufacturing 240,000 Selling and Administrative 90,000 330,000 Operating Profit 30,000 During December 2020, the entity manufactured a total of 80,000 units Required: Assuming a tax rate of 25%, how much sales is needed to generate an after-tax profit of P90,000?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Twenty Twenty One Corp.
Income Statement
For the month ended December 31, 2020
| Sales (P10/unit) | 900,000 | |
| Beginning Inventory | 125,000 | |
| Variable Cost of Goods Manufactured | 400,000 | |
| Total Goods Available for Sale | 525,000 | |
| Ending Inventory | 75,000 | |
| Variable Cost of Goods Sold | 450,000 | |
| Variable Selling Expense | 90,000 | 540,000 |
| Contribution Margin | 360,000 | |
| Manufacturing | 240,000 | |
| Selling and Administrative | 90,000 | 330,000 |
| Operating Profit | 30,000 |
During December 2020, the entity manufactured a total of 80,000 units
Required: Assuming a tax rate of 25%, how much sales is needed to generate an after-tax profit of P90,000?
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