Volume sales and before tax profit

Related BrainMass Solutions

• Cost Volume Profit Analyses

  After-tax profit = Before-tax profit * 60% = (Sales in units * Contribution margin per unit - Fixed costs) * 60% Let X = Sales in units, then: 90000 = (2.50X - 60000) * 0.6 90000 = 1.5X - 36000 1.5X = 126000 X = 84,000 units Cost volume profit analyses

• Financial Analysis Exercise - Marketing Manager for the Zig Brand of Microwave Oven

  ___________________________ Before tax profit = Total contribution – Fixed cost = 62,760,000-5,800,000 = $56,960,000 6. What market share must Zig obtain to contribute a before tax profit of $100 million?

• Cost Volume Profit Analysis for Steve Stiff and Company

  Breakeven Sales in Units with the Desired Profit after Taxes
  Since the Desired Profit after Taxes=60,000
  the Desired Profit BEFORE Taxes=60,000/(1 - Tax Rate)
  = 60,000/(1 - 40%)= $100,000
  Then Breakeven Sales in Units with the Desired

• CVP Analysis

  What is the current before tax profit of the Zig brand'? ___________________________ 6. What market share must Zig obtain to contribute a before tax profit of $100 million?

• a. Compute earnings per share under the Katz plan. b. Compute earnings per share under the Doberman plan. c. Mr. Katz's wife does not think that fixed costs would remain constant under the Doberman plan but that they would go up by 20 percent. If this is the case, should Mr. Katz shift to the Doberman plan, based on earnings per share?

  cost = 1.5 million Variable cost = 3*2=6.0 million Profit before interest and tax = 8-1.5-6.0=0.5 million Interest = 0.8*9%=0.072 million Profit before tax = 0.5-0.072 million=0.428 million Tax = 30%*0.428 million Profit After Tax = 0.2996 million

• Able Co: Income statement, break even and CVP analysis

  Detemine income in the manner used in cost-volume-profit analysis c. At what sales dollar level will Able earn a before-tax target profit of $250,000 d. At what sales dollar level will Able break even. Please see the attached file.

• Managerial Accounting: Break Even Point Analysis

  Before-tax operating profit = After-tax operating profit/ [1 - Tax rate]  $6,000,000/ [1 - .40]  $10,000,000 Step 2: To find the target quantity Target units = [Fixed costs + Before tax operating profit required]/Contribution margin per unit 

• Calculating break even point in dollars and units

  c.The vice president believes that this plan will result in a before tax earning of $60,000. How many units must be sold to reach this earning level? d.Create a Cost-Volume-Profit graph for the answer to part (b).

• Three cost accounting problems

  Corporate policy dictates that all special projects must generate an after-tax profit of $21,000.