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Q1) The following is Alsatian Corporation's contribution format income statement from last month: Sales(2000 units x $70) $140,000 Less: Variable Costs 84.000 Contribution Margin 56,000
Q1) The following is Alsatian Corporation's contribution format income statement from last month: Sales(2000 units x $70) $140,000 Less: Variable Costs 84.000 Contribution Margin 56,000 Less: Fixed Expenses 24,000 Operating Income $32,000 The company has no beginning or ending inventories and produced and sold 2,000 units during the month F/ If the business requires an operating income of 20% of sales, what will be the required sales in $, assuming all costs and selling prices remain as in the original data? (4) G/ Suppose Alsatian Corporation had a tax rate of 25% and wants to earn an after tax net income of $24.000. Calculate the sales in units that would be needed from the original data? (3)
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