Question

Ng Corporation produces and sells only one product; its selling price is $100 and its variable cost is $80 per unit. The company’s monthly fixed expense is $20,000.
Required:
1. Using the equation method, solve for the unit sales that are required to earn a target profit before taxes of $3,000.
2. Using the formula method, solve for the dollar sales that are required to earn a target profit before taxes of $4,000.
3. Using the formula method, calculate the number of units that need to be sold to earn an after-tax income of $6,000, assuming a tax rate of 25%.


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  • CreatedJuly 08, 2015
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