Question
XYZ Inc. sell Product Y at P5 per unit. The variable costs of making and selling each unit is P3 while the total fixed cost
XYZ Inc. sell Product Y at P5 per unit. The variable costs of making and selling each unit is P3 while the total fixed cost is P2,000. The company wants to earn a profit of P3,000. The company is subject to 40% tax rate.
- What should be the level of sales in units and pesos to earn the desired profit if it is after tax?
- What is the Margin of Safety for the target sales computed in requirement 3 in units, pesos, and percentage?
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A One Year Accounting Course
Authors: Trevor Gambling
21st Edition
0080130275, 9780080130279
