Exercise +-19 The manager of Bernadette Company has a plan to increase sales volume at the store. The average operating results for each week are given below: Sales revenue Variable costs Fixed costs for one week P120,000 90,000 20.000 The manager plans to bring shoppers into the store by having a weekly raffle for a prize of P2,000. For every twenty pesos of merchandise purchased, the shopper will receive a numbered ticket for the raffle. The variable cost to print and distribute the tickets has been estimated at P0.40 per ticket. Promotion and other fixed costs in connection with the raffle have been estimated at P1,000 per week. The manager estimated that sales can be doubled with the weekly raffle. The regional manager is skeptical and believes that the cost of promotion will be vary high although it may increase sales slightly to P130,000 a week. REQUIRED: 1. Compute the average weekly net income they are making at present without the raffle. 2. Compute the sales revenue required to break-even without the raffle. 3. Compute the sales revenue required to break-even with the raffle. t. If the raffle can increase sales to P130,000, how much will be added to the weekly profits? 5. If the sales can be doubled, how much will be added to profits? 6. Should the raffle be held