4.14 The Ship Company is planning to produce two products, Alf and Tarf. Ship is planning to sell 100,000 units of Alf at P4 per unit and 200,000 units of Tarf at P3 per unit. Variable costs are 70% of sales for Alf and 80% of sales for Tarf. Instructions: In order to realize a total income of P160,000 before taxes on these two products, what must the total fixed costs be?

4.14 The Ship Company is planning to produce two products, Alf and Tarf. Ship is planning to sell 100,000 units of Alf at P4 per unit and 200,000 units of Tarf at P3 per unit. Variable costs are 70% of sales for Alf and 80% of sales for Tarf. Instructions: In order to realize a total income of P160,000 before taxes on these two products, what must the total fixed costs be?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 21E

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