Baguio Corporation has these selected data: Units to be sold 25,000 Total Cost of the units P500 Fixed Capital investment 1,000,000 Variable capital on sales 20% What should be the unit selling price of its product to have a 20% return on investment?

Baguio Corporation has these selected data: Units to be sold 25,000 Total Cost of the units P500 Fixed Capital investment 1,000,000 Variable capital on sales 20% What should be the unit selling price of its product to have a 20% return on investment?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 16MC: If current assets are $100,000 and current liabilities are $42,000, what is the working capital? A....

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

Please help me with show all calculation thanku

Baguio Corporation has these selected
data:
Units to be sold 25,000
Total Cost of the units P500
Fixed Capital investment 1,000,000
Variable capital on sales 20%
What should be the unit selling price of its
product to have a 20% return on
investment?

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