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Rosario Company produces a single product in its Buenos Aires plant, which currently sells for 6.20 p per unit. Fixed costs are expected to amount
Rosario Company produces a single product in its Buenos Aires plant, which currently sells for 6.20 p per unit. Fixed costs are expected to amount to 58,000 p for the year, and all variable manufacturing and administrative costs are expected to be incurred at a rate of 2.50 p per unit. Rosario has two salespeople who are paid strictly on a commission basis. Their commission is 9 percent of the sales dollars 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 1886 U.S. dollars.) 1. Suppose management alters its current plans by spending an additional amount of 4, 900 p on advertising and increases the selling price to 7.20 p per unit. Calculate the profit on 63,000 units. (Do not round intermediate calculations.) Profit p
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