Assuming that the fixed costs are expected to remain at P200,000 for the coming year and the sales price per unit and variable costs per unit are also expected to remain constant, how much profit after taxes will be produced if the company anticipates sales for the coming year rising to 125 percent of the current year's level? 

2.Based on the cost and revenue structure on the income statement, what was NUBD's break-even point in pesos?

3.What was NUBD's margin of safety? 

 

Transcribed Image Text:

Below is an income statement for NUBD Company: Sales P 400,000 (120,000) Variable costs Contribution margin P280,000 (200,000) P 80,000 (20,000) P 60.000 Fixed costs Profit before taxes Income tax Net income Below is an income statement for NUBD Company: Sales P 400,000 (120,000) Variable costs Contribution margin P280,000 (200,000) P 80,000 (20,000) P 60.000 Fixed costs Profit before taxes Income tax Net income

Answer rating: 100% (QA)

To calculate the profit after taxes for the coming year we need to first calculate the expected sales for the coming year If the sales are anticipated ... View the full answer