Copycat manufacturing company is subject to a 30% income tax rate, had the following operating data: Selling
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Copycat manufacturing company is subject to a 30% income tax rate, had the following operating data: Selling price per unit, P60; variable cost per unit, P22 and fixed costs of P504,000. Management plans to improve the quality of its product by replacing a component that costs P3.50 with a higher grade material that costs P5.50 and acquiring a P180,000 packing machine. The company will depreciate the machine over a 10-year life with no estimated salvage value using the straight line method of depreciation. If the company wants to earn an after income tax of P201,600, how many units must it sell under the new proposal?
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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