NUBD Co. is a convenience store that is currently open only Monday through Saturday. It considers...
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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? * 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? *
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Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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