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ABC Mfg. incurs an annual fixed cost of P250,000 in producing and selling Cooky. Estimated unit sales for 2010 are 125,000.An after-tax income of P75,000

ABC Mfg. incurs an annual fixed cost of P250,000 in producing and selling "Cooky". Estimated unit sales for 2010 are 125,000.An after-tax income of P75,000 is desired by management. The company projects its income tax rate at 40%. What is the maximum amount that ABC Mfg. can spend for variable costs per unit and still meet its profit objective if the sales price per unit is projected at P7?

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