Twenty Twenty One Corp. Income Statement For the month ended December 31, 2020 Sales (P10/unit) 900,000 Beginning Inventory 125,000 Variable Cost of Goods Manufactured 400,000 Total Goods Available for Sale 525,000 Ending Inventory 75,000 Variable Cost of Goods Sold 450,000 Variable Selling Expense 90,000 540,000 Contribution Margin 360,000 Manufacturing 240,000 Selling and Administrative 90,000 330,000 Operating Profit 30,000 During December 2020, the entity manufactured a total of 80,000 units Required: Assuming the entity raises its unit sales by 15%, how much would be the expected increase in the profit before tax?
Twenty Twenty One Corp. Income Statement For the month ended December 31, 2020 Sales (P10/unit) 900,000 Beginning Inventory 125,000 Variable Cost of Goods Manufactured 400,000 Total Goods Available for Sale 525,000 Ending Inventory 75,000 Variable Cost of Goods Sold 450,000 Variable Selling Expense 90,000 540,000 Contribution Margin 360,000 Manufacturing 240,000 Selling and Administrative 90,000 330,000 Operating Profit 30,000 During December 2020, the entity manufactured a total of 80,000 units Required: Assuming the entity raises its unit sales by 15%, how much would be the expected increase in the profit before tax?
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
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....
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Twenty Twenty One Corp.
Income Statement
For the month ended December 31, 2020
| Sales (P10/unit) | 900,000 | |
| Beginning Inventory | 125,000 | |
| Variable Cost of Goods Manufactured | 400,000 | |
| Total Goods Available for Sale | 525,000 | |
| Ending Inventory | 75,000 | |
| Variable Cost of Goods Sold | 450,000 | |
| Variable Selling Expense | 90,000 | 540,000 |
| Contribution Margin | 360,000 | |
| Manufacturing | 240,000 | |
| Selling and Administrative | 90,000 | 330,000 |
| Operating Profit | 30,000 |
During December 2020, the entity manufactured a total of 80,000 units
Required: Assuming the entity raises its unit sales by 15%, how much would be the expected increase in the profit before tax?
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