How many units must be sold to earn an after tax profit

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Use the following information to answer the six questions below.

Variable Manufacturing Cost Per Unit 20

Variable selling cost per unit 25

Selling Price per unit 100

Fixed Manufacturing cost per unit 30

Fixed selling cost per unit 10

Expected production and sales 1000 units

Problem 1. Contribution Margin per unit is?

Problem 2. The Contribution Margin ratio is?

Problem 3. Break-even point for the product is?

Problem 4. If the firm wants to earn P70,000 in pre-tax profit, sales revenue must be equal to?

Problem 5. If the firm wants to earn P70,000 in pre-tax profit, contribution margin must equal to?

Problem 6. If the tax rate is 40 percent how many units must be sold to earn an after tax profit of P60,000?

Reference no: EM132823465

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