accounts paper 3/2008 query

CS 718 views 1 replies

plz help

ques no 6 (ii) selling price is rs 200 each variable cost of the product is rs 120 per unit and fixed cost is rs 96000.

sales unit required to earn atarget net profit of rs 100000 after income tax assuming income tax rate to be 50%.

 

in the present problem what will be the target profit rs 100000 after tax

                         or

income tax will be added back to net profit to calculate the sales unit.

plz guide.

 

 

Replies (1)

 RS.1,00,000 + tax RS.1,00,000 =profit before tax  RS.2,00,000(profit to be achieved before tax)

sales units= (rs.2,00,000 + RS.96,000) / (RS.200 - RS.120) = 3700 units


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