15. The manager of the Cement Division expects the following results in 2022: Sales Variable Costs (60%) P 49.600,00O 29, 760,000 19,840.000 12.000,000 P 7.840,000 Contribution Margin Fixed Costs Profit The Division's investments are as follows: Plant equipment Working Capital ROI P 19,510.000 P 14.880.00O 22.8% The division has a target ROI of 30 percent, and the manager has asked you to determine how much sales volume the division would need in order to realize that. He states that the sales mix is relatively constant so variable costs should be close to 60 percent of sales, fixed costs and plant and equipment should remain constant, and working capital should vary closely with sales in the percentage reflected above. 15. The peso sales that the division needs in order to realize the 30 perceni ROI target is: O a. P 19,829,032 O b. P 57,590,322 O c. P 44,373,871 O d. P 59,510,000
15. The manager of the Cement Division expects the following results in 2022: Sales Variable Costs (60%) P 49.600,00O 29, 760,000 19,840.000 12.000,000 P 7.840,000 Contribution Margin Fixed Costs Profit The Division's investments are as follows: Plant equipment Working Capital ROI P 19,510.000 P 14.880.00O 22.8% The division has a target ROI of 30 percent, and the manager has asked you to determine how much sales volume the division would need in order to realize that. He states that the sales mix is relatively constant so variable costs should be close to 60 percent of sales, fixed costs and plant and equipment should remain constant, and working capital should vary closely with sales in the percentage reflected above. 15. The peso sales that the division needs in order to realize the 30 perceni ROI target is: O a. P 19,829,032 O b. P 57,590,322 O c. P 44,373,871 O d. P 59,510,000
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.16E
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