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can i get the answer for this reconditioning the goods? 8-10. Change in Profit Factors. Sporty Company manufactures visors which it selle at P10 each.
can i get the answer for this
reconditioning the goods? 8-10. Change in Profit Factors. Sporty Company manufactures visors which it selle at P10 each. Manufacturing and selling costs include variable cost of paper unit and fixed cost of P20,000. with the coming mini olympic games to be held in the nearby city, Sporty is expecting to double its regular sales of 10,000 units. However, a slight moda rication on the design of the Visors has to be made to fit the passion. This is expected to increase variable cost by P2 per unit. Moreover, to take advantage of the affair and the expected increase in demand for the product, the company is considering to increase its selling price by 30%. Required: 1. If all the estimates will hold true, how much will be the company's total income? 2. Assume that the modification on the design of the visors will not be made, thereby reducing the increase in sales to only 50%, how much will be the company's total income? 3. Assume that there will be no increase in selling price, compute the expected total income of the company. PROBLEMSStep by Step Solution
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