Q3. Information below is given for a company that manufactures one product. What should be the...

 

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Q3. Information below is given for a company that manufactures one product. What should be the minimum price of product to obtain 12% net profit margin (ROS)? Show your calculations and prepare the income statement. Fixed costs (F): $450.000 Unit variable cost (V): $8 Planned quantity of sales (Q): 200.000 units Tax rate: 40% Q3. Information below is given for a company that manufactures one product. What should be the minimum price of product to obtain 12% net profit margin (ROS)? Show your calculations and prepare the income statement. Fixed costs (F): $450.000 Unit variable cost (V): $8 Planned quantity of sales (Q): 200.000 units Tax rate: 40%

Answer rating: 100% (QA)

To determine the minimum price of the product to obtain a 12 net profit margin we need to calculate ... View the full answer