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Malume Ltd manufactures and sells a special cellphone for $20. The summarized income statement from 2019 is as follows Sales 800 000 Direct materials 120 000 Direct wages 160 000 Variable production over heads 80 000 Fixed administration over heads 75 000

Malume Ltd manufactures and sells a special cellphone for $20. The summarized income statement from 2019 is as follows Sales 800 000 Direct materials 120 000 Direct wages 160 000 Variable production over heads 80 000 Fixed administration over heads 75 000

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8MC: A company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be...
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Malume Ltd manufactures and sells a special cellphone for $20. The summarized income statement from 2019 is as follows $ $ Sales 800 000 Direct materials 120 000 Direct wages 160 000 Variable production over heads 80 000 Fixed administration over heads 75 000 Fixed production over heads 100 000 Fixed selling and distribution over heads 60 000 595 000 Net profit before tax 205 000 Less provision for tax (40%) 82 000 Net profit after tax 123 000 Required a) Calculate the break-even point in dollars and in units for 2019 b) Determine the number of units to sell in 2020 in order to achieve after profit of $150 000 c) Calculate the sales value required to achieve a net profit before tax of 15% of total revenue
Transcribed Image Text:Malume Ltd manufactures and sells a special cellphone for $20. The summarized income statement from 2019 is as follows $ $ Sales 800 000 Direct materials 120 000 Direct wages 160 000 Variable production over heads 80 000 Fixed administration over heads 75 000 Fixed production over heads 100 000 Fixed selling and distribution over heads 60 000 595 000 Net profit before tax 205 000 Less provision for tax (40%) 82 000 Net profit after tax 123 000 Required a) Calculate the break-even point in dollars and in units for 2019 b) Determine the number of units to sell in 2020 in order to achieve after profit of $150 000 c) Calculate the sales value required to achieve a net profit before tax of 15% of total revenue
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ISBN:
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