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plz solve with proper format of accounts Laila company has provided the following information about the company Sales $225,000 Sales Discount 520,000 Overhead cost (Fixed)
plz solve with proper format of accounts
Laila company has provided the following information about the company Sales $225,000 Sales Discount 520,000 Overhead cost (Fixed) S 35,000 Onehead (Vrable) $ 20,000 Sales Return Allowance $2.500 5 39.600 $ 15,000 Selling commission[vmable] Selling commission (fixed) Variable adem expenses Fixed admon expenses Tax 524500 $ 20,000 25% 55.420 Interest expenses Capacity of producing Un sold Umuts produced 3.500 3.500 1. The sales manager believes that project of the company could increase sales by 25% but variable cost will also decrease by $5,000 and fixed cost will increase by $ 85,000. Should the company accept the project or reject ? 2. Determine the sales revenue necessary to generate before tax profit of $75,000 3. Determine sales revenue necessary to generate after-tax profit of $75,000 if tax rate 30% 4. Calculate degree of leverage (DOL) and if sales increases by 25%, what wil be the increase or decrease in net income of this company? What will be the total net income if the project is accepted BI U AStep by Step Solution
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