Ms. Ganda sells two beauty products for hopeless individuals, Sandpaper and Eraser. Historically, the firm has sold,
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Question:
Sandpaper Eraser
Selling Price P20 P10
Contribution margin per unit 6 4
REQUIRED:
How much revenue is needed to break-even? How many units of Sandpaper and Eraser does it represent?
How much revenue is needed to earn pre-tax profit of P10,800?
How much revenue is needed to earn an after-tax profit of P15,680? (Ms.Ganda pays corporate income taxes OF 30%)
If the company earns the revenue determined in (2), but in doing so, sells 2 units of Sandpaper for each Eraser, what would the pre-tax profit or loss be?
Related Book For
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
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