Question

17 Toshiba produce refrigerators for consumer use. Each refrigerator cost LG RO250 and they sell each with RO400. The company pay a fixed cost 300000 every year. They also have a profit target of 25000 after tax and a profit target of 40000 pre-tax. The tax rate for the year is 40%. How much sales revenue they should make to achieve the targeted pre-tax profit Select one: a. RO 906666.667 b. RO 966666.667 c. RO 806666.667 d. RO 866666.667

          17
Toshiba produce refrigerators for consumer use. Each refrigerator cost LG RO250 and they sell each with RO400. The company
pay a fixed cost 300000 every year. They also have a profit target of 25000 after tax and a profit target of 40000 pre-tax. The tax
rate for the year is 40%. How much sales revenue they should make to achieve the targeted pre-tax profit
Select one:
a. RO 906666.667
b. RO 966666.667
c. RO 806666.667
d. RO 866666.667

17
Toshiba produce refrigerators for consumer use. Each refrigerator cost LG RO250 and they sell each with RO400. The company
pay a fixed cost 300000 every year. They also have a profit target of 25000 after tax and a profit target of 40000 pre-tax. The tax
rate for the year is 40%. How much sales revenue they should make to achieve the targeted pre-tax profit
Select one:
a. RO 906666.667
b. RO 966666.667
c. RO 806666.667
d. RO 866666.667

Added by Kristen E.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Teayanna Leytham

Step 1

The profit per refrigerator is the selling price minus the cost price. Profit per refrigerator = RO400 - RO250 = RO150. Show more…

Show all steps

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Toshiba produces refrigerators for consumer use. Each refrigerator costs RO250 and they sell each for RO400. The company's profit rate for the year is 40%. How much sales revenue do they need to achieve the targeted pre-tax profit?