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Larz Company produces a single product. It sold 25,000 units last year with the following results: Sales P625,000 Variable costs P375,000 Fixed costs 150,000 525.000 Net income before taxes P100,000 Income taxes 40.000 Net income P 60,000 In an attempt to improve its product in the coming year, Larz is considering replacing a component part in its product that has a cost of P2.50 with a new and better part costing P4.50 per unit. A new machine will also be needed to increase plant capacity. The machine would cost P18,000 with a useful life of 6 years and no salvage value. If Larz wishes to maintain the same contribution margin ratio after implementing the changes, what selling price per unit of product must it charge next year to cover the increase in material costs? P32.50 O P25.00 O P28.33 O P27.00