Eastwood Electronics registered accelerated increases in its net income from P 400,000 in 2020 to P...

  

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Eastwood Electronics registered accelerated increases in its net income from P 400,000 in 2020 to P 1,200,000 in 2021. Rate of return on Current Assets increased from 25% in 2020 to 30% in 2021. Current Asset turnover, on the other hand, went down to 2.25 turnover in 2021 from 2.50 turnover in 2020. The Cost of Goods Sold and Operating Expenses excluding depreciation in 2020 amounted to P Rojie Company is currently operating at a loss of P10,000. The sales manager has received a special order for 5,000 units of product, which normally sells for P35 per unit. Costs associated with the product are: direct material, P6; direct labor, P10; variable overhead, P3; applied fixed overhead, P4; and variable selling expenses, P2. The special order would allow the use of a slightly lower grade of direct material, thereby lowering the price per unit by P1.50 and selling expenses would be decreased by P1. If Rojie wants this special order to increase the total net income for the firm to P5,000, the sales price must be quoted for each of the 5,000 units would be P per unit (round off your answer to the nearest centavo) Zer da je Eastwood Electronics registered accelerated increases in its net income from P 400,000 in 2020 to P 1,200,000 in 2021. Rate of return on Current Assets increased from 25% in 2020 to 30% in 2021. Current Asset turnover, on the other hand, went down to 2.25 turnover in 2021 from 2.50 turnover in 2020. The Cost of Goods Sold and Operating Expenses excluding depreciation in 2020 amounted to P Rojie Company is currently operating at a loss of P10,000. The sales manager has received a special order for 5,000 units of product, which normally sells for P35 per unit. Costs associated with the product are: direct material, P6; direct labor, P10; variable overhead, P3; applied fixed overhead, P4; and variable selling expenses, P2. The special order would allow the use of a slightly lower grade of direct material, thereby lowering the price per unit by P1.50 and selling expenses would be decreased by P1. If Rojie wants this special order to increase the total net income for the firm to P5,000, the sales price must be quoted for each of the 5,000 units would be P per unit (round off your answer to the nearest centavo) Zer da je

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SOLUTION To calculate the sales price per unit P that would result in a total net income of P5000 we ... View the full answer