In 2019, Rivera Company presented the net income after(40%) tax of P5,520,000 as follows: Average sales price per box is P200; Variable cost of candy per box P100; Variable marketing cost P20; Annual fixed marketing cost P8,000,000; Annual fixed administrative cost P14,000,000. In 2020, to maintain the 2019 contribution margin ratio, Dayao will increase sales price per box due to increase in cost of candy per box by 15%. All other cost remain the same. What is the new break-even sales volume?
In 2019, Rivera Company presented the net income after(40%) tax of P5,520,000 as follows: Average sales price per box is P200; Variable cost of candy per box P100; Variable marketing cost P20; Annual fixed marketing cost P8,000,000; Annual fixed administrative cost P14,000,000. In 2020, to maintain the 2019 contribution margin ratio, Dayao will increase sales price per box due to increase in cost of candy per box by 15%. All other cost remain the same. What is the new break-even sales volume?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 2RE: Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of...
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In 2019, Rivera Company presented the net income after(40%) tax of P5,520,000 as follows: Average sales price per box is P200; Variable cost of candy per box P100; Variable marketing cost P20; Annual fixed marketing cost P8,000,000; Annual fixed administrative cost P14,000,000. In 2020, to maintain the 2019 contribution margin ratio, Dayao will increase sales price per box due to increase in cost of candy per box by 15%. All other cost remain the same. What is the new break-even sales volume?
338,462
480,000
275,000
244,444
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