p2 Belowis an income statem ent for NUBD Company:P 400,000(120,000)Contribution margin P280,000(200.000)Profit before taxes P 80,000(20,000)P 60.000SalesVariable costsFixed costsIncome taxNet income Assuming that the fixed costs are expected to remain at P200,000 for the coming year and thesales price per unit and variable costs per unit are also expected to remain constant, howmuch profit after taxes will be produced if the company anticipates sales for the coming yearrising to 125 percent of the current year's level? *

A rise in sales will cause a proportional rise in the variable costs. But, the fixed costs will…

Answered: profit after taxes will be produced

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 9MC: A company has pre-tax or operating income of $120,000. If the tax rate is 40%, what is the companys...

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