Ng Corporation produces and sells only one product; its selling price is $80 and its variable...
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Ng Corporation produces and sells only one product; its selling price is $80 and its variable cost is $60 per unit. The company's monthly fixed expense is $34,000. Required: 1. Using the equation method, determine the unit sales that are required to earn a target profit before tax of $5,000. Unit sales 2. Using the formula method, determine for the dollar sales that are required to earn a target profit before tax of $8,000. Dollar sales units 3. Using the formula method, calculate the number of units that need to be sold to earn an after-tax income of $10,000, assuming a tax rate of 20%. Number of units units Ng Corporation produces and sells only one product; its selling price is $80 and its variable cost is $60 per unit. The company's monthly fixed expense is $34,000. Required: 1. Using the equation method, determine the unit sales that are required to earn a target profit before tax of $5,000. Unit sales 2. Using the formula method, determine for the dollar sales that are required to earn a target profit before tax of $8,000. Dollar sales units 3. Using the formula method, calculate the number of units that need to be sold to earn an after-tax income of $10,000, assuming a tax rate of 20%. Number of units units
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Solution 1 2 Selling Price Per Unit Less Variabale cost ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Posted Date:
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