# Answer to Question #51160 in Accounting for carol

Question #51160

Assume that a company intends to sale product in the market, at a selling price of sh.9 per

unit. The V C is shs.5 per unit and the T F C is sh.2000

Required:

i. Compute the B E P in units and in shs.

ii. Assume that the company intends to make a profit before tax of 20% of sales,

determine the number of units that must be sold.

iii. Assume that the corporate tax rate is 30% and the company has a target profit

of 1640 after tax. Compute the number of units that must be sold to earn this

target profit.

If the company expects to sale 600 units, compute the marginal of safety.10mks

unit. The V C is shs.5 per unit and the T F C is sh.2000

Required:

i. Compute the B E P in units and in shs.

ii. Assume that the company intends to make a profit before tax of 20% of sales,

determine the number of units that must be sold.

iii. Assume that the corporate tax rate is 30% and the company has a target profit

of 1640 after tax. Compute the number of units that must be sold to earn this

target profit.

If the company expects to sale 600 units, compute the marginal of safety.10mks

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