Silvermine, Inc. sells Product M for P5 per unit. The fixed cost is P210. 000 and the variable cost is 60% of the selling price. What would be the amount of sales if Darigold is to realize a profit of 10% of sales?

 

 

2. Sandugo Industries is replacing a grinder purchased 5 years ago for P15, 000 with a new one costing P25, 000 cash. The original grinder is being depreciated on a straight-line basis over 15 years to a zero salvage value. Kagitingan will sell this old equipment to third party for P6, 000 cash.

 

The new equipment will be depreciated on a straight-line basis over 10 years to a zero salvage value. Assuming a 40% marginal tax rate, Kagitingan's net cash investment at the time of purchase if the old grinder is sold and the new one purchased is