Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE ANSWER 3. In 2018, Hardship Company sold its single product for P10 each. Variable manufacturing costs amounted to P2 per unit. The company needed

PLEASE ANSWER

image text in transcribed

3. In 2018, Hardship Company sold its single product for P10 each. Variable manufacturing costs amounted to P2 per unit. The company needed to sell 17,600 units last year to breakeven. The net income after tax last year to break even was P 4,435.20 subject to 30% tax rate. Hardship expects that sales price will increase to P12 , variable cost will increase by 1/2 and that fixed cost will increase by 8% a. If Hardhsip desires to maintain the same contribution margin rate as of last year, what should be its selling price in 2019. b. What will be fixed cost before the expected changes? c. According to Hardhsip's expectation for 2019, how many units should it sell to breakeven? d. At break even point of 400 units, variable expense of P 4,000 and fixed cost of P 2,000. What will be the contribution margin per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Financial Accounting (Chapters 1-17)

Authors: John Wild

24th Edition

1260158608, 9781260158601

More Books

Students also viewed these Accounting questions

Question

What do you like to do in your spare time?

Answered: 1 week ago