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Beads company has studied its costs and projected the following: (see attached photo) Note: The middle column of the table are the Total Annual Costs,
Beads company has studied its costs and projected the following:
(see attached photo)
Note: The middle column of the table are the Total Annual Costs, and the last column are the Percentage of Total Annual Costs that is variable
a. Compute the company's selling price that will yield a projected 10% profit if sales are 40,000 units.
b. Assume that the management selects a selling price of P30.00 per unit. Compute the company's peso sales that will yield a projected 10% profit on sales, assuming the above variable-fixed costs relationship are valid.
addtional information before the table:
Costs Direct Material Direct Labor Manufacturing FOH Selling and Administrative Expenses P400,000 360,000 300,000 Total Annual Costs that is variable 100% 75 40 200,000 25 The company performed cost studies and projected the following costs based on 40,000 units of production and sales :))
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