Question: Tronics Co. is developing a new product, YOYO, for a high voltage electrical flow.The cost information that follows relate to the product. Unit Cost Direct

Tronics Co. is developing a new product, YOYO, for a high voltage electrical flow.The cost information that follows relate to the product.

Unit Cost

Direct materials 3.25

Direct labor4.00 Distribution0.75

The company will also be absorbing P120,000 of additional fixed costs associated with this new product.A corporate fixed charge of P20,000 currently absorbed by other products will be allocated to this new product.

  1. How many units of YOYO (rounded to the nearest hundreds) must be sold to gain P30,000 before taxes?
  2. If the selling price is P14 per unit, the breakeven units (rounded to the nearest hundreds) for YOYO is
  3. How many units (rounded to the nearest hundred) must be sold if the P30,000 profit is after tax? (Tax rate 40%)

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