Ng Corporation produces and sells only one product; its selling price is $80 and its...
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Accounting
Ng Corporation produces and sells only one product; its selling price is $80 and its variable cost is $60 per unit. The companys monthly fixed expense is $23,000.
Required:
1. Using the equation method, determine the unit sales that are required to earn a target profit before tax of $6,000.
2. Using the formula method, determine for the dollar sales that are required to earn a target profit before tax of $7,000.
3. Using the formula method, calculate the number of units that need to be sold to earn an after-tax income of $9,000, assuming a tax rate of 25%.
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