Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Patch Ltd has various lines of business. The General Manager has requested you to show how to deal with the given situations, for different products.
Patch Ltd has various lines of business. The General Manager has requested you to show how to deal with the given situations, for different products. (a) For one product, the company has revenue of Rs500,000, variable costs of R$350,000, and fixed costs of Rs135,000, in its budget for next month. (0) Calculate the contribution margin percentage. (1 mark) (i) Calculate the total revenue needed to break even. (1 mark) (iii) Calculate the total revenue needed to achieve a target operating income of Rs45,000. (2 marks) Calculate the total revenue needed to achieve a target net income of Rs48,000, assuming the income tax rate is 40 percent. (2 marks) (iv)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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