1 14.Kara's Mop Shop had variable costs of $26,780, fixed costs of $16,920, and anoperating loss of $2,500. If Kara's tax rate is 30%, what annual sales volume (in dollars)would be required for Kara to have an after-tax income of $2,170?a. $47,627b. $57,200c. $41,200d. $54,543e. $44,300f. $43,370g. $43,700h. None of the above

Cost volume profit analysis is the technique used by management for decision-making. The methods…

Answered: Kara's Mop Shop had variable costs of…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 13E

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The NUBD Co. Sells Product A for P60 each. Variable costs are P36 per unit. Fixed costs are P375,000. 1. How much sales in units must be reached to realize a Net Income of P102,000 before income taxers? 2. How much sales in units must be reached to realize a Net Income of P97,500 after income taxes. Tax rate is 35%? 3. How much sales in pesos must be reached to realize a Net Income of 15% of sales? Ignore income taxes.
1. Jeff Music sells its brand of banduria at $167.00 each. The company spends costs of $38.00 to produce each banduria. The corresponding weekly fixed costs are $16,900.00. a. What is the linear equation of the weekly profit, P, to the quantity of banduria produced, X. b. Determine the break-even quantity? c. What is the break-even revenue? d. What will be the profit or loss if there will be 147 qty of banduria?
Oops, JAC forgot about taxes. Assume a tax rate of 21% Using information and your calculations from xlsx 7 determine the following: 1.) Assuming a desired after tax profit of $16,000, what is the pretax profit JAC has to earn? 2.) How many units does JAC have to sell to earn the desired after tax profit of $16,000. 225 units at $100 per unit Variable cost $20 per unit Contribution margin = Fixed costs = $18,000 Operating income = JAC has a desired profit of $16,000 1.) Calculate the number of units they need to sell to accomplish this. 2.) Calculate the dollar amount of sales they need to accomplish this. 1. Required sale for target profit = ( Fixed cost + Desired profit ) / Contribution marginContribution margin = Sales price - Variable cost = 100 - 20= 80Required sale for target profit = ( 18,000 + 16,000 ) / 80= 34,000 / 80= 425 units The dollar amount of sales for target profit =( Fixed cost + Desired profit ) / Contribution margin ratioContribution margin ratio = Contribution /…
The QWERT INC. sells Product A for P60 each. Variable costs are P36 per unit. Fixed costs are P375,000.Questions: 1, How much sales in units must be reached to realize a Net income of P102,000 before income taxes.2. How much sales in units must be reached to realize a Net income of P97,500 after income taxes. Tax rate is 35%3. How much sales in pesos must be reached to realize a Net income of 15% of sales. Ignore income taxes.
2. A company had a loss of P3 per unit when sales were P40,000 units. When sales were P50,000 units, it had a loss of P1.60 per unit. Required: a. Determine the contribution margin per unit. b. Determine fixed costs. c. Determine the break even point in units and in pesos. d. What sales should it earn to make a before-tax profit of 20%?
For the most recent quarter, Baffle company had an after-tax profit of $62,720 from sales of 225,000 units. The company's variable costs are 60% of the selling price and fixed costs are $121,900. If the company's tax rate is 30%, what was the selling price per unit? (Round your answer to the nearest penny): a. $0.82 b. $1.57 c. $2.35 d. $2.05 e. $1.17 f. $1.37 g. $1.77 h. None of the above.
8. The Holiday Card Company, a producer of specialty cards, has asked you to complete several calculations based upon the following information: Income tax rate 30% Selling price per unit $6.60 Variable cost per unit $5.28 Total fixed costs $46,200.00 Required: a. What is the breakeven point in cards? b. What sales volume is needed to earn an after-tax net income of $13,028.40? c. How many cards must be sold to earn an after-tax net income of $18,480?
(à ai euisy eononston orit bris 08 zi bulsy bensqm (5) If the total cost of an item, including 8% sales tax, is $28.62, what was the price before adding in sales tax? (6) The total rainfall (in inches) decreased from 7.8 to 2. What is the absolute change? noitsion (7) A man's weight is 27% less than his original weight Hence, new weight 01xA1-(²018) + (²01×a) (er) % of the original weight. (fill in blank)
I se the following information to answer questions 1-6. Selling price per unit Luriable manufacturing cost per unit Fixed manufacturing cost per unit V'ariable selling cost per unit Fixed selling cost per unit Expected production and sales P100 20 30 25 10 1,000 units
For the most recent quarter, Baffle company had an after-tax profit of $62,720 from sales of 225,000 units. The company’s variable costs are 60% of the selling price and fixed costs are $121,900. If the company’s tax rate is 30%, what was the selling price per unit? (Round your answer to the nearest penny): a. $0.82b. $1.57c. $2.35d. $2.05e. $1.17f. $1.37g. $1.77h. None of the above.
A firm sell a single product for $6. Its variable cost per unit is $4 and fixed costs are $50. Ignoring income taxes, the amount of sales revenue needed for $20 profit is Select one: a. $210. b. $150. c. $35. d. $25.
19.Bluejeans Company has an after-tax profit of P140,000. Bluejeans has a return on sales of 20% and the tax rate is 30%. The total fixed costs of Bluejeans amounts to P100,000, what is the contribution margin ratio if the sales volume increases to 150%?

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