Calculate total units to be sold to achieve target profit

Reference no: EM132818999

Data related to the expected sales of a Products for ABC Inc. for the current year is follows:

Products Unit Selling Price Unit Variable Cost

Automobile ETB 200,000 ETB 160,000

The estimated fixed costs for the current year are ETB 20,000,000.

Instructions:

Problem a) Determine the estimated units of sales of the product necessary to reach the break-even point for the current year.

Problem b) Assume the company targets income before tax ETB 4,000,000. Calculate total units to be sold to achieve target profit.

Reference no: EM132818999

Questions Cloud

How saint leo core value of integrity is relevant : How Saint Leo's core value of Integrity is relevant to Managerial Accounting. Describe how this fits in with the field of Managerial Accounting.

Arguments for corporate accountability and citizenship : Arguments for corporate accountability and citizenship emphasize the declining power of governments and the increasing power of multinationals

Discussion about the key variables in the selected article : Write a 750-word paper about your selected article. Be sure to include the following in your paper: A discussion about the key variables in the selected article

Which bond has the higher current yield : Bond A is a 20-year, 9% (semiannual pay) bond that is priced to yield 10.5%. Which bond has the higher current yield

Calculate total units to be sold to achieve target profit : Assume the company targets income before tax ETB 4,000,000. Calculate total units to be sold to achieve target profit. Determine the estimated units of sales

Calculate the discounted payback period : The company is in the 25% corporate tax bracket and has a discount rate of 10%. Calculate the Discounted Payback Period

Define findings on ethnic variations in child-rearing styles : Summarize findings on ethnic variations in child-rearing styles. Is the concept of authoritative parenting useful for understanding effective parenting across.

What is the definition of transfer pricing : What is the definition of transfer pricing? Transfer pricing is in the cross hairs of tax policy as it relates to the competing objectives of what three parties

How would you assess the relative power : How would you assess the relative power of the main actors in the MG Rover case - Do you think this is appropriate or inappropriate in this situation?

User Account

All Pages