Answered step by step
Verified Expert Solution
Question
1 Approved Answer
MANAMA COMPANY Functional Income Statement For the Month Ending May 31, 2020 Sales (30,000 units) $300,000 Cost of goods sold: Direct materials $30,000 Direct labor
MANAMA COMPANY Functional Income Statement For the Month Ending May 31, 2020 Sales (30,000 units) $300,000 Cost of goods sold: Direct materials $30,000 Direct labor 22,500 Variable manufacturing overhead 18,750 Fixed factory overhead 20,000 91,250 Gross profit $208,750 Selling and administrative expenses: Variable $ 3,750 Fixed 10,000 13,750 Income before tax $195,000 Income Tax (25%) (48,750) Net income after tax 146,250 Calculate: AB 1- Manama's break-even sales in units and dollars. 2- Margin of safety in units and dollars. 3- If in addition to the fixed factory overhead, the company paid 0.5 per unit to the government additional tax. Compute the new Breakeven point. 4- The sales volume in dollars to earn an after tax income of $200,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started