How many units must it sell under the new proposal

Assignment Help Accounting Basics
Reference no: EM133086102

Question - Copycat manufacturing company is subject to a 30% income tax rate, had the following operating data: Selling price per unit, P60; variable cost per unit, P22 and fixed costs of P504,000. Management plans to improve the quality of its product by replacing a component that costs P3.50 with a higher grade material that costs P5.50 and acquiring a P180,000 packing machine. The company will depreciate the machine over a 10-year life with no estimated salvage value using the straight line method of depreciation. If the company wants to earn an after income tax of P201,600, how many units must it sell under the new proposal?

Reference no: EM133086102

Questions Cloud

Food processing in the human alimentary canal : Discuss the food processing in the human alimentary canal.
Proceeding and development of capital markets : Draw up a careful analysis of the proceeding and development of capital markets about the Wolf of Wall Street movie storyline including the impact and/or roles
Designing profit-sharing plans : Identify and briefly comment on the key issues in designing profit-sharing plans.
At what sales level is the company indifferent : The company currently pays salaries of P40,000 per month but with no commission. At what sales level is the company indifferent
How many units must it sell under the new proposal : If the company wants to earn an after income tax of P201,600, how many units must it sell under the new proposal
Describe functional business requirements : Describe the functional business requirements (scope) and scope control for your hypothetical start-up e-commerce company.
Reinforce positive behavior : Sometimes managers need to reinforce positive behavior but cannot use a cash incentive to do so.
Multicultural makeup of team : What challenges do you expect the team will face because of its multicultural makeup? How can you help the team overcome these challenges?
Top news publications or industry journals : Using Research any one of the top employer lists frequently posted by top news publications or industry journals,

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd