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Ethel Company produces only two products, Peter and Senen. These account for 60% and 40% of the total sales pesos of Ethels respectively. Variable Cost
Ethel Company produces only two products, Peter and Senen. These account for 60% and 40% of the total sales pesos of Ethels respectively. Variable Cost as a percentage of sales pesos are 60% for Peter and 85% for Senen. Total fixed cost are 150,000. There are no other costs.
1. Compute the weighted contribution margin ratio.
2. Compute the the break-even point in sales
3. Compute the sales pesos necessary to generate a net income of 9,000 if total fixed cost will increase by 30%
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