(22) WITH SOLUTIONS PLEASE

Problem Solving: The following economic data were provided by the corporate planning staff of Spike, Inc.: Sales volume 30,000 units P30 Sales price per unit Unit variable costs: Variable manufacturing P13 Other variable costs 8 P21 Unit variable costs Unit contribution margin P.8 Fixed costs: Manufacturing P150,000 Other fixed costs P 50,000 Total fixed costs P200,000 The management is considering installing a new, automated manufacturing process that will increase fixed costs by P50,000 and reduce variable manufacturing cost by P3 per unit. The management set a target a profit of P70,000 before and after the acquisition of the automated machine. After installation of the automated machine, what will be the change in the units required to achieve the target profit? The management is considering installing a new, automated manufacturing process that will increase fixed costs by P50,000 and reduce variable manufacturing cost by P3 per unit. The management set a target a profit of P70,000 before and after the acquisition of the automated machine. After installation of the automated machine, what will be the change in the units required to achieve the target profit? OP4,333 unit decrease O 6,667 unit increase 5,667 unit decrease P3,333 unit decrease