Question: NUBD Co. is a convenience store that is currently open only Monday through Saturday. It considers opening every Sunday. The annual incremental fixed costs

NUBD Co. is a convenience store that is currently open only Monday

NUBD Co. is a convenience store that is currently open only Monday through Saturday. It considers opening every Sunday. The annual incremental fixed costs of Sunday openings are estimated at P52,000. The company's contribution margin ratio is 20%. It estimates that 60% of its Sunday sales to customers would be made on other days if the store were not open during Sundays. How much additional weekly sales would be necessary for NUBD Co. to attain an increase of P2,500 in weekly operating profit by opening every Sunday? *

Step by Step Solution

3.42 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To calculate the additional weekly sales necessary for NUBD Co to attain an increase of P2500 in wee... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!