Question
Abc Company produces DEF COMPANY products. Operations of the current year resulted to the following data: Sales 5,000 units Sales price 50 per unit Variable
Abc Company produces DEF COMPANY products.
Operations of the current year resulted to the following data:
Sales 5,000 units
Sales price 50 per unit
Variable expense 20 per unit
Fixed expense 40,000
(1) What is the company's contribution margin ratio?
(2) If the company's fixed expenses increased by P8,000, how many units must be sold to reach a target net operating income of P36,000?
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
978-0073526706, 9780073526706
