Abc Company produces DEF COMPANY products. Operations of the current year resulted to the following data: Sales

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Abc Company produces DEF COMPANY products.

Operations of the current year resulted to the following data:

Sales 5,000 units

Sales price 50 per unit

Variable expense 20 per unit

Fixed expense 40,000

(1) What is the company's contribution margin ratio?

(2) If the company's fixed expenses increased by P8,000, how many units must be sold to reach a target net operating income of P36,000?

Related Book For answer-question

Managerial Accounting

ISBN: 9780073526706

12th Edition

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

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Posted Date: Jan 18, 2023 10:50 PM

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Abc Company produces DEF COMPANY products. Operations of the current year resulted to the following data: Sales

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Costvolumeprofit or CVP analysis is essentially a way to figure out how changes in fixed andor varia... View the full answer

Managerial Accounting

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