Black Eagle Company produces and sells one product. The controller of the company prepared the following...

 

Transcribed Image Text:

Black Eagle Company produces and sells one product. The controller of the company prepared the following budgeted income statement for the next year. TL 80.000 (44.000) 36.000 Sales - Variables Expenses Contribution Margin - Fixed Expenses Income Before Tax Unit selling price of the product is 20 TL and tax rate is 20 percent. REQUIRED: a. b. (27.000) 9.000 Prepare a cost volume-profit graph for the company. Calculate break-even point in units. C. Calculate margin of safety in units. d. How many units must be sold to earn income after tax equal to 16 percent of sales revenue? Black Eagle Company produces and sells one product. The controller of the company prepared the following budgeted income statement for the next year. TL 80.000 (44.000) 36.000 Sales - Variables Expenses Contribution Margin - Fixed Expenses Income Before Tax Unit selling price of the product is 20 TL and tax rate is 20 percent. REQUIRED: a. b. (27.000) 9.000 Prepare a cost volume-profit graph for the company. Calculate break-even point in units. C. Calculate margin of safety in units. d. How many units must be sold to earn income after tax equal to 16 percent of sales revenue?

Answer rating: 100% (QA)

a Cost volume profit graph for the company For CVP graph we need to find Break Even point in units a... View the full answer