A company that sells its single product for P40 per unit had after-tax net income for the past year of P1,188,000 after applying an effective tax rate of 40%. The projected costs for manufacturing and selling its single product in the coming year are listed below. Variable costs per unit: Direct material P5.00 Direct labor 4.00 Manufacturing overhead Selling and administrative costs Total variable cost per unit 6.00 3.00 18.00 Annual fixed operating costs: Manufacturing overhead P6,200,000 Selling and administrative costs 3.700.000 Total annual fixed cost 9.900.000 The peso sales volume required in the coming year to earn the same after-tax net income as the past year is?
A company that sells its single product for P40 per unit had after-tax net income for the past year of P1,188,000 after applying an effective tax rate of 40%. The projected costs for manufacturing and selling its single product in the coming year are listed below. Variable costs per unit: Direct material P5.00 Direct labor 4.00 Manufacturing overhead Selling and administrative costs Total variable cost per unit 6.00 3.00 18.00 Annual fixed operating costs: Manufacturing overhead P6,200,000 Selling and administrative costs 3.700.000 Total annual fixed cost 9.900.000 The peso sales volume required in the coming year to earn the same after-tax net income as the past year is?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2DQ: Which of the following costs would be classified as variable and which would be classified as fixed,...
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A company that sells its single product for P40 per unit had after-tax net income for the past year of P1,188,000 after
applying an effective tax rate of 40%. The projected costs for manufacturing and selling its single product in the coming
year are listed below.
Variable costs per unit:
Direct material
P5.00
Direct labor
4.00
Manufacturing overhead
Selling and administrative costs
Total variable cost per unit
6.00
3.00
18.00
Annual fixed operating costs:
Manufacturing overhead
P6,200,000
Selling and administrative costs
3.700.000
Total annual fixed cost
9.900.000
The peso sales volume required in the coming year to earn the same after-tax net income as the past year is?
The following activity and cost data that were provided by Hoist Corporation would help in estimating its future
maintenance costs:
Units
Maintenance cost
3
P1.350
7
P1.590
11
P1.920
-15
P2.100
Using the least squares regression method to estimates the cost formula, the expected total cost for an activity level of 10 units would be closest to (nearest peso)
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