Answered: How much is the sales required for ABC…

How much is the sales required for ABC to earn P 8,000 before tax earnings? b. How much is the sales required for ABC to earn P 6,000 after tax earnings and the tax rate is 40%?

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 4BE

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Selling Price P 10 Variable Cost per unit P 6 Total Fixed Costs P 20,000 Units Sold 7,000 units a. How much is the sales required for ABC to earn P 8,000 before tax earnings? b. How much is the sales required for ABC to earn P 6,000 after tax earnings and the tax rate is 40%?

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