Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Information for Melong Industries is provided below. Average selling price per unit $10.00 Average variable costs per unit Cost per unit 5.00 Selling Costs 1.40

Information for Melong Industries is provided below.

Average selling price per unit $10.00

Average variable costs per unit

Cost per unit 5.00

Selling Costs 1.40

Annual fixed costs:

Selling240,000

Administration 380,000

After tax profit target126,000

Tax rate 30%

Required:

A. Calculate thebefore-tax profit

B. Calculate the number of units thatneed to be sold in 2015 to reach the after tax profit target.

C. If the sales units in 2015 should be 25 per cent less than required to meet the after tax profit target, what will theafter tax profit actually be?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Governmental And Nonprofit Accounting Theory And Practice

Authors: Robert J Freeman, Craig D Shoulders, Gregory S Allison, Terry K Patton, Robert Smith,

9th Edition

0132552728, 9780132552721

More Books

Students also viewed these Accounting questions

Question

Is there something else I need more?

Answered: 1 week ago

Question

What does stickiest refer to in regard to social media

Answered: 1 week ago