The Perez Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for P7.50 each, and the variable cost to manufacture them was P2.25 per unit. The company needed to sell 20,000 shirts to break even. The net income last year was P5,040. Harper's expectations for the coming year include the following: The sales price of the T-shirts will be P9 2.Variable cost to manufacture will increase by one-third 3.Fixed costs will increase by 10% 4.The income tax rate of 40% will be unchanged The selling price that would maintain the same contribution margin rate as last year is
The Perez Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for P7.50 each, and the variable cost to manufacture them was P2.25 per unit. The company needed to sell 20,000 shirts to break even. The net income last year was P5,040. Harper's expectations for the coming year include the following: The sales price of the T-shirts will be P9 2.Variable cost to manufacture will increase by one-third 3.Fixed costs will increase by 10% 4.The income tax rate of 40% will be unchanged The selling price that would maintain the same contribution margin rate as last year is
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 16E
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The Perez Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for P7.50 each, and the variable cost to manufacture them was P2.25 per unit. The company needed to sell 20,000 shirts to break even. The net income last year was P5,040. Harper's expectations for the coming year include the following:
- The sales price of the T-shirts will be P9
2.Variable cost to manufacture will increase by one-third
3.Fixed costs will increase by 10%
4.The income tax rate of 40% will be unchanged
The selling price that would maintain the same contribution margin rate as last year is
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