Advertising expense was not included in the above. Based on market study in December 2019, the company estimated that it could increase the unit selling price by 10% and increase the unit sales volume by 20% if P200,000 would be spent on advertising. If Alpha CD will incorporate these changes in its 2019 forecast, what would be the operating income? a. P480,000 b. P720,000 c. P680,000 d. P420,000

Advertising expense was not included in the above. Based on market study in December 2019, the company estimated that it could increase the unit selling price by 10% and increase the unit sales volume by 20% if P200,000 would be spent on advertising. If Alpha CD will incorporate these changes in its 2019 forecast, what would be the operating income? a. P480,000 b. P720,000 c. P680,000 d. P420,000

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 10Q: If the sales forecast estimates that 50,000 units of product will be sold during the following year,...

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