b) If the selling price increases by 10% calculate the increase in the net profit at the whole capacity assuming the taxes are 48% of the gross profit.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
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3G Asiacell o000.
A docs.google.com
A certain factory produces 2000Ton per year
of its product. Th price of one kilogram is
1.8$. The annual direct production cost is
2million $ when the factory works at its
whole capacity. Other fixed costs are 7X10^5
Your email address will be recorded when
you submit this form.
Not std22000100091@mustaqbal-
college.edu.iq? Switch account
* Required
a) Calculate the value of fixed cost per
kg of the product at the break even
point.
Your answer
b) If the selling price increases by 10%
calculate the increase in the net profit
at the whole capacity assuming the
taxes are 48% of the gross profit.
Transcribed Image Text:3G Asiacell o000. A docs.google.com A certain factory produces 2000Ton per year of its product. Th price of one kilogram is 1.8$. The annual direct production cost is 2million $ when the factory works at its whole capacity. Other fixed costs are 7X10^5 Your email address will be recorded when you submit this form. Not std22000100091@mustaqbal- college.edu.iq? Switch account * Required a) Calculate the value of fixed cost per kg of the product at the break even point. Your answer b) If the selling price increases by 10% calculate the increase in the net profit at the whole capacity assuming the taxes are 48% of the gross profit.
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