If the company wants to achieve a residual income of P 40,000 using an imputed interest charge of 15%, what will be the selling price per unit of 20,000 units sold ; where its costs and expenses totaled P 250,000, working capital used totaled P 300,000 and PPE-net amounted to P 100,000. A• 15.50 B• 35.00 C• 17.50 D• 5.00

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are...
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If the company wants to achieve a residual income of P 40,000 using an imputed interest charge of 15%, what will be the selling price per unit of 20,000 units sold ; where its costs and expenses totaled P 250,000, working capital used totaled P 300,000 and PPE-net amounted to P 100,000.

A• 15.50
B• 35.00
C• 17.50
D• 5.00
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