Nuevo Company manufactures a product which sells for PS. At present the company produces and sells 50.000 units per year. Unit variable manufacturing and marketing expenses are P2.50 and P.50 respectively. Fixed expenses are P70.000 for factory overhead and P30,000 for marketing and administration. The sales manager has proposed that the price be increased to Pb. To maintain the present sales volume. advertising must be increased. The company's profit objective is 10% of sales. 2. Compute the additional expenditure the company can afford for advertising a The annual FC amounted to P798.000. At present the contribution margin ratio's rates 3. Determine the amount of sales if the desired profit is P173,800 net of the flox For the first P100.000 25% In excess of P100,000 35% F) Bosh Company expects to incur the following costs to produce and sell 70.000 units of its product Variable manufacturing cost P210.000 Fixed manufacturing cost 80,000 Variable marketing expense 105.000 Fixed marketing and administrative expenses 60.000 4. What price does Bosh have to charge for the product in order just to break even if all 70.000 units produced are solde 5. Bosh plans to expand capacity next year to 100.000 units. The increased capacity will increase fixed manufacturing costs to P130.000. If the sales price of each unit remains at P8, how many units must Bosh sell in order to produce a profit of 20% of sales G) In 2018, the company's sales was P 500,000. Its fixed costs amounted to P 100.000 per year. In 2019, sales was 20% higher, while profit was P 30.000 higher than the 2018 profit. For 2020, the company expects to have sales that is twice as much as the 2018 sales. The expected increase in production to meet the sales demand in 2020 will not require the company to exceed its normal capacity. 6. What is the company's contribution margin ratio 7. How much profit does the company expect to earn in 20202 H) A company's breakeven sales (BES) is P 600.000. If fixed costs would increase by 10% of this BES, such BES would increase by 40% 8. What is the company's variable cost ratio 9. How much is fixed costs at the new BES level 141