Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Ara Company has a 25% margin of safety. Its before-tax return on sales is 6%, and its tax rate is 40%. If fixed costs amount

Ara Company has a 25% margin of safety. Its before-tax return on sales is 6%, and its tax rate is 40%. If fixed costs amount to P320,000, how much sales did Ara make for the year? *

A. P1,066,667

B. P1,777,778

C. P1,684,211

D. P2,133,333

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions