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The following information pertains to the Duffy Company's three products: A B Unit sales per month 500 800 500 Selling price per unit P3.00 P3.75
The following information pertains to the Duffy Company's three products: A B Unit sales per month 500 800 500 Selling price per unit P3.00 P3.75 P3.00 Variable price per unit 1.20 3.00 3.30 Unit contribution margin P1.80 P0.75 P(0.30) Contribution margin ratio 60% 25% (10)% Assume that product C is discontinued and the extra space is devoted to the production of A. Product A production is increased to 800 units per month, but A's selling price on all units of A is reduced to P2.80. Assuming everything else remains the same as the original data, monthly profits will O increase by P530 O decrease by P380 O increase by P680 O decrease by P540 increase by P390
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