A company that sells its single product for P40 per unit had after-tax net income for the past year of P1,188,000 afterapplying an effective tax rate of 40%. The projected costs for manufacturing and selling its single product in the comingyear are listed below.Variable costs per unit:Direct materialP5.00Direct labor4.00Manufacturing overheadSelling and administrative costsTotal variable cost per unit6.003.0018.00Annual fixed operating costs:Manufacturing overheadSelling and administrative costsTotal annual fixed costP6,200,0003.700.0009,900,00013The peso sales volume required in the coming year to earn the same after-tax net income as the past year is A company that sells its single product for P40 per unit had after-tax net income for the past year of P1,188,000 afterapplying an effective tax rate of 40%. The projected costs for manufacturing and selling its single product in the comingyear are listed below.Variable costs per unit:Direct materialP5.00Direct labor4.00Manufacturing overhead6.00Selling and administrative costs3.00Total variable cost per unit18.00Annual fixed operating costs:Manufacturing overheadP6,200,000Selling and administrative costs3,700,000Total annual fixed cost9,900,000The peso sales volume required in the coming year to earn the same after-tax net income as the past year is

Solution... Net income after tax = P1,188,000 Income before tax = Income after tax ÷ (100% - tax…

Answered: A company that sells its single product…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11E

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A company that sells its single product for P40 per unit had after-tax net income for the past year of P1,188,000 after applying an effective tax rate of 40%. The projected costs for manufacturing and selling its single product in the coming year are listed below. Variable costs per unit: Direct material P5.00 Direct labor 4.00 Manufacturing overhead Selling and administrative costs Total variable cost per unit 6.00 3.00 18.00 Annual fixed operating costs: Manufacturing overhead Selling and administrative costs Total annual fixed cost P6,200,000 3.700.000 9,900,000 13 The peso sales volume required in the coming year to earn the same after-tax net income as the past year is

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