Question 33

Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow: Selling price per unit P35 Manufacturing cost P4,000 per month plus P17 per unit Administrative expense P2,500 per months plus P2.50 per unit Sales commissions 15% of sales Advertising expense P2,000 per month If Buffo plans to produce and sell 3,000 units next month, the expected contribution margin would be: O P46,500. O P26,750. P30.750. OP74.250