Belowis an income statement for NUBD Company P400,000 (120.000) Contribution margin P280,000 (200.000) P 80,000 (20.000) P 60.000 Sales Variable costs Fixed costs Profit before taxes Income tax Net income

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...
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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?

Belowis an income statement for NUBD Company:
Sales
Variable costs
P400,000
(120,000)
Contribution margin P280,000
(200.000)
Profit before taxes P 80,000
(20.000)
P 60.000
Fixed costs
Income tax
Net income
Transcribed Image Text:Belowis an income statement for NUBD Company: Sales Variable costs P400,000 (120,000) Contribution margin P280,000 (200.000) Profit before taxes P 80,000 (20.000) P 60.000 Fixed costs Income tax Net income
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