3. In 2018, Hardship Company sold its single product for P10 each. Variable
manufacturing costs amounted to P2 per unit. The company needed to sell
17,600 units last year to breakeven. The net income after tax last year to break
even was P 4,435.20 subject to 30% tax rate. Hardship expects that sales price
will increase to P12 , variable cost will increase by 1/2 and that fixed cost will
increase by 8%
a. If Hardhsip desires to maintain the same contribution margin rate as of last
year , what should be its selling price in 2019.
b. What will be fixed cost before the expected changes?
c. According to Hardhsip's expectation for 2019, how many units should it sell
to breakeven?
d. At break even point of 400 units, variable expense of P 4,000 and fixed cost
of P 2,000. What will be the contribution margin per unit?