On 2009, the company's sales was p500, 000. Its fixed costs amounts to P100,000 per year....

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On 2009, the company's sales was p500, 000. Its fixed costs amounts to P100,000 per year. In 2010, sales was 20% higher, while fit was P30, 000 higher than the 2009 figures. 12011, the company expects to have sales that is twice as much as the 2009 sales. The expected increase in production to meet sales demand in 2011 will not require the company to exceed its normal capacity. What is the company's contribution margin ratio? How much profit does the company expects to earn in 2011? On 2009, the company's sales was p500, 000. Its fixed costs amounts to P100,000 per year. In 2010, sales was 20% higher, while fit was P30, 000 higher than the 2009 figures. 12011, the company expects to have sales that is twice as much as the 2009 sales. The expected increase in production to meet sales demand in 2011 will not require the company to exceed its normal capacity. What is the company's contribution margin ratio? How much profit does the company expects to earn in 2011?

Answer rating: 100% (QA)

Solution Given Sales in 2009 P500000 Fixed costs P100000 per year Sales in 2010 20 higher than 2009 sales Fixed costs in 2010 P30000 higher than 2009 ... View the full answer