The Summit Company's year-end income statement is as follows: Sales (20,000 units)-- -P360,000 Variable costs------ -220,000 Contribution margin--P140,000 Fixed costs-- -105,000 Net income- -P 35,000 Summit's management is unhappy with the results and plans to make some changes for next year. If management implements a new marketing program, fixed costs are expected to increase by P19,200 and variable costs to increase by P1 per unit. Unit sales are expected to increase by 15 percent. What is the effect on income if the foregoing changes are implemented?

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Heres how to analyze the effect on income if the changes are implemented 1 Calculate the current con... View the full answer