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Php900,000 Fatty Company's income statement for 2018 appears below: Sales Cost of goods sold Direct materials Php225,000 Direct labor 67,500 Variable overhead 22,500 Fixed overhead
Php900,000 Fatty Company's income statement for 2018 appears below: Sales Cost of goods sold Direct materials Php225,000 Direct labor 67,500 Variable overhead 22,500 Fixed overhead 270,000 Gross profit Selling and administrative expenses Variable 45,000 Fixed 135,000 Operating income 585,000 315,000 180,000 135,000 The company decides to increase its expenses for advertising in the coming year. It expects to incur additional fixed advertising expenses amounting to Php27,000 for the coming year. It expects that the sales would remain at the Php900,000 sales level. What is the expected margin of safety in peso sales
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