19. Archie sells a single product for P50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to P400,000. Current sales total 16,000 units. In order to produce a target profit of P22,000, Archie's dollar sales must total: Your answer

19. Archie sells a single product for P50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to P400,000. Current sales total 16,000 units. In order to produce a target profit of P22,000, Archie's dollar sales must total: Your answer

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter16: Capital Structure Decisions

Section: Chapter Questions

Problem 1P

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

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19. Archie sells a single product for P50.
Variable costs are 60% of the selling price,
and the company has fixed costs that amount to P400,000.
Current sales total 16,000 units.
In order to produce a target profit of P22,000,
Archie's dollar sales must total:
Your answer

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