Question
PICPA presently sells 400,000 bottles of perfume each year. Each bottle costs P0.85 to produce and sells for PI .00. Fixed costs are P28,000 per
PICPA presently sells 400,000 bottles of perfume each year. Each bottle costs P0.85 to produce and sells for PI .00. Fixed costs are P28,000 per year. The firm has annual interest expense of P6,000, preference share dividends of P2,000 per year, and a 30 percent tax rate. What is the expected change in the EPS if sales will increase by 10%?
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Cornerstones of Cost Management
Authors: Don R. Hansen, Maryanne M. Mowen
4th edition
1305970667, 978-1337514842, 1337514845, 978-1305970663
