What should be the sales if the company desires an after-tax

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Reference no: EM132812461

To be able to compute for the breakeven, Blue Corp. needs to estimate variable and fixed costs. For the first three months of operations, total factory overhead incurred were as follows: January, P80,000; February, P140,000; and March, P200,000. Consequently, variable factory overhead were allocated using direct labor hours, which were 1,000, 3,000, and 5,000 hours for January, February and March, respectively.

Problem 1: Blue Corp incurred fixed operating expenses that is 75% of the fixed factory overhead. On the other hand, variable operating expenses were 50% of variable production costs. What should be the sales if the company desires an after-tax profit of P300,000 within the three months operation of the company? (TAX RATE 40%)

a. ? 979,167
b. ? 931,291
c. ? 1,262,417
d. ? 260,000

Reference no: EM132812461

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