Assuming a tax of 3%, if introduced how much sales must be made to earn a profit after tax equal to the current profit?

Here are the calculations for the questions. 4. Assuming a tax of 3% is introduced, how much sales must be made to earn a profit after tax equal to the current profit? Step 1: Identify the target profit after tax and the tax rate. Target Profit After Tax = Current Net Profit = N312,500 (from previous calculations) Tax Rate = 3\% = 0.03 Step 2: Calculate the required Profit Before Tax (PBT). Let PBT be the Profit Before Tax. Profit After Tax = PBT × (1 - Tax Rate) N312,500 = PBT × (1 - 0.03) N312,500 = PBT × 0.97 PBT = N312,5000.97 PBT ≈ N322,164.95 Step 3: Identify the fixed costs and contribution margin per unit from previous calculations. Total Fixed Costs (FC) = N250,000 Contribution Margin per unit (CM per unit) = N22.50/unit Step 4: Calculate the number of units that must be sold to achieve the target PBT. Units to be sold = Total Fixed Costs + Target PBTContribution Margin per unit Units to be sold = N250,000 + N322,164.95N22.50/unit Units to be sold = N572,164.95N22.50/unit Units to be sold ≈ 25,429.55 units Since units must be whole numbers, we round up. Units to be sold = 25,430 units Step 5: Calculate the total sales revenue required. Selling Price per unit (SP) = N40/unit Total Sales Revenue = Units to be sold × SP Total Sales Revenue = 25,430 units × N40/unit Total Sales Revenue = N1,017,200 The company must make sales of N1,017,200 to earn a profit after tax equal to the current profit. --- 3. A break down of maintenance costing department of ABC Limited shows that there is a fixed element of N5,000 per month and a variable element related to hours per machine hour, with a rate of N600 per machine hour. What is the expected cost per month when the plan activity level is: Step 1: Identify the fixed and variable cost components. Fixed Maintenance Cost = N5,000 per month Variable Maintenance Cost Rate = N600 per machine hour The total maintenance cost formula is: Total Cost = Fixed Cost + (Variable Cost Rate × Machine Hours) i) 2,500 machine hours Step 2: Calculate the total maintenance cost for 2,500 machine hours. Total Cost = N5,000 + (N600/machine hour × 2,500 machine hours) Total Cost = N5,000 + N1,500,000 Total Cost = N1,505,000 The expected cost per month for 2,500 machine hours is N1,505,000. ii) 3,000 machine hours Step 3: Calculate the total maintenance cost for 3,000 machine hours. Total Cost = N5,000 + (N600/machine hour × 3,000 machine hours) Total Cost = N5,000 + N1,800,000 Total Cost = N1,805,000 The expected cost per month for 3,000 machine hours is N1,805,000.