ABC Company has fixed costs of P1,000,000O, Break-even sales of P 5,000,000 and contribution margin ration of 20%. What is the projected profit at P7,500,000 sales? 1. P 500,000 2. P 1,500,000 3. P 2,000,000 4. P4,000,000

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...
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ABC Company has fixed costs of P1,000,000, Break-even sales of P 5,000,0OC
and contribution margin ration of 20%. What is the projected profit at
P7,500,000 sales?
1. P 500,000
2. P 1,500,000
3. P 2,000,000
4. P 4,000,000
O 1
O 2
O 3
4.
Transcribed Image Text:ABC Company has fixed costs of P1,000,000, Break-even sales of P 5,000,0OC and contribution margin ration of 20%. What is the projected profit at P7,500,000 sales? 1. P 500,000 2. P 1,500,000 3. P 2,000,000 4. P 4,000,000 O 1 O 2 O 3 4.
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