123 INC. is planning to market 300,000 units of Product X. The fixed costs are P600,000 and the variable costs are 60% of the selling price. Question: Compute the selling price per unit if the company expects to earn a profit of P120,000 on its planned sales.

123 INC. is planning to market 300,000 units of Product X. The fixed costs are P600,000 and the variable costs are 60% of the selling price. Question: Compute the selling price per unit if the company expects to earn a profit of P120,000 on its planned sales.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

123 INC. is planning to market 300,000 units of Product X. The fixed costs are P600,000 and the variable costs are 60% of the selling price.

Question:
Compute the selling price per unit if the company expects to earn a profit of P120,000 on its planned sales.

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