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Average selling price P4.00 per box Average variable costs Cost of candy P2.00 per box Selling expenses 0.40 per box Total P2.40 per box Annual fixed costs Selling P 169,000 Administrative 280,000 Total P 440.000 Expected annual sales volume (390,000 boxes) P1,560,000 Manufacturers of candy have announced that they will increase prices of their products an average of 15% in the coming year due to increases in raw material (sugar, cocoa, peanuts, etc.) and labor costs. Bittersweet Company expects that all other costs will remain at the same rates or levels as the current year. Bittersweet is subject to 40 percent tax rate. If profit after taxes would remain the same after the cost of candy increases but no increase in the sales price is made, how many boxes of candy must Bittersweet sell? A. 480,000 C. 27.600 B. 400,000 D. 29,300 * Pila Company sells two products, Briggs and Boggs. Last year, Pila sold 12,000 units of Briggs and 24,000 units of Bogs. Related data are: Unit Selling Unit Variable Unit Price Cost Contribution Product Margin Briggs P120 P80 P40 Boggs 80 60 20 Assuming that last year's fixed costs totaled P910,000, what was Pila Company's composite break-even point? A. 34,125 C. 27,302 B. 11375 D. 9 101 * Use the following graph:10. Bittersweet Company is a wholesale distributor of candy. The company services various grocery, convenience, and drug stores in Metro Manila. Small, but steady growth in sales, has been achieved by the company over the past few years while candy prices have been increasing. The company is formulating its plans for the coming fiscal year. Presented below are the data used to project the current year's after-tax profit of P110,400