Required information [The following information applies to the questions displayed below.] Corrientes Company produces a single...

Transcribed Image Text:

Required information [The following information applies to the questions displayed below.] Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.40 p per unit. Fixed costs are expected to amount to 56,000 p for the year, and all variable manufacturing and administrative costs are expected to be incurred at a rate of 2.70 p per unit. Corrientes has two salespeople who are paid strictly on a commission basis. Their commission is 10 percent of the sales revenue they generate. (Ignore income taxes.) (p denotes the peso, Argentina's national currency. Many countries use the peso as their national currency. On the day this exercise was written, Argentina's peso was worth $0.104 U.S. dollar.) Required: 1. Suppose management alters its current plans by spending an additional amount of 4,900 p on advertising and increases the selling price to 7.40 p per unit. Calculate the profit on 62,000 units. (Do not round intermediate calculations. Enter your answer in pesos.) Profit p Required information [The following information applies to the questions displayed below.] Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.40 p per unit. Fixed costs are expected to amount to 56,000 p for the year, and all variable manufacturing and administrative costs are expected to be incurred at a rate of 2.70 p per unit. Corrientes has two salespeople who are paid strictly on a commission basis. Their commission is 10 percent of the sales revenue they generate. (Ignore income taxes.) (p denotes the peso, Argentina's national currency. Many countries use the peso as their national currency. On the day this exercise was written, Argentina's peso was worth $0.104 U.S. dollar.) Required: 1. Suppose management alters its current plans by spending an additional amount of 4,900 p on advertising and increases the selling price to 7.40 p per unit. Calculate the profit on 62,000 units. (Do not round intermediate calculations. Enter your answer in pesos.) Profit p