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2. Mostkuno Company is making plans for next year, using the CVP analysis as it planning tool. Next year's sales data about its product


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2. Mostkuno Company is making plans for next year, using the CVP analysis as it planning tool. Next year's sales data about its product are as follows: Selling price Variable manufacturing cost per P60.00 22.50 4.50 unit Variable selling and administrative cost Fixed operating costs (60% is P148,500.00 manufacturing cost) Income tax rate 30% Assume that Mostkuno's management learned that a new technology that will increase the quality of its product is available. If implemented, its projection for next year will be changed: . The selling price of the product will increase to P75 per unit. Fixed manufacturing costs will increase by 20% Additional advertising cost will be incurred to promote the higher quality product. This will increase fixed non-manufacturing cost by 10%. The improve product will require a new material that will increase direct material cost by P4.50 If the new technology is adopted, how much sales should the company make to earn a pre-tax profit of 10% on sales?

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