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Question - Grampian-pizza Company sells pizza to retailers for TZS 88,000 per box. The variable cost of goods sold per box is TZS 17,600, with a selling commission of 10 percent. Fixed manufacturing costs total TZS 440,000,000, while fixed selling and administrative costs total TZS 184,800,000. The income tax rate for Grampian-pizza Company is 30 percent.
Required -
What are target sales in boxes to generate a before tax income of TZS 52,800,000?
What are target sales in boxes to generate an after tax income of TZS 54,208,000?
What is net income, assuming Grampian-pizza sells a total of 165,000 boxes?
Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased.
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