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Star Lord expects the following results, without considering any of the changes described below: Product A Product B Total Sales P 100,000 P 300,000 P
Star Lord expects the following results, without considering any of the changes described below: Product A Product B Total Sales P 100,000 P 300,000 P 400,000 Variable costs 40,000 100,000 140,000 Contribution margin P 60,000 P 200,000 P 260,000 Fixed costs - avoidable (20,000) (30,000) (50,000) Fixed costs - unavoidable* (50,000) (100,000) (150,000) Profit (loss) (P 10,000) P 70,000 P 60,000 * based on unit sales of 100 A and 200 B. If product A were dropped and unit sales of product B increased by 60%, what would the company's income be? Group of answer choices P 20,000 P 140,000 P 120,000 P 200,000
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