Question
i have strugling with this question doing on excel. could you please help me to find out it Details of Keira Pty Ltd's income statement
i have strugling with this question doing on excel. could you please help me to find out it
Details of Keira Pty Ltd's income statement for the past year are as follows:
Sales (18 000 units) Cost of sales:
Direct materials
Direct labour
Variable factory overhead
Fixed factory overhead
GROSS PROFIT
Variable selling expenses
Fixed selling and admin expenses PROFIT BEFORE TAX
Income tax expense (30%) PROFIT
$290,000 310,000 102,000
42,000
96,000 30,000
$990,000
744,000 246,000
126,000 120,000 36,000 84,000
Required:
Consider each of the following independent situations:
- Determine the company's break-even point in units and sales dollars. What is the margin of safety?
- If the company wants to make an after-tax profit of $100,000, what is the dollar level of sales necessary to reach its goal?
- If the sales volume is 15,000 units, what is the selling price needed to achieve an after-tax profit of $100,000?
- lf the company's sales volume increases by 10% as a result of increasing fixed selling expenses by $10,000 and variable selling expenses by $0.60 per unit, what is the company's after-tax profit?
- If direct material costs increase 15%, direct labour costs increase 10%, variable overhead costs increase 15%, and fixed overhead increases by $10 000, how many units must be sold to earn an after-tax profit of $100,000? Round your calculations to the next highest unit.
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