35. X Co generates a 12 per cent contribution on its weekly sales of P280,000. A new product, Z, is to be introduced at a special offer price in order to stimulate interest in all the company's products, resulting in a 5 per cent increase in weekly sales of the company's other products. Product Z will incur a variable unit cost of P2.20 to make and PO.15 to distribute. Weekly sales of Z, at a special offer price of P1.90 per unit, are expected to be 3,000 units. The effect of the special offer will be to increase the company's weekly profit by: O a P330 Ob P780 O c P12,650 Od P19,700

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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35. X Co generates a 12 per cent contribution on its weekly sales of
P280,000. A new product, Z, is to be introduced at a special offer price in
order to stimulate interest in all the company's products, resulting in a 5
per cent increase in weekly sales of the company's other products.
Product Z will incur a variable unit cost of P2.20 to make and PO.15 to
distribute. Weekly sales of Z, at a special offer price of P1.90 per unit, are
expected to be 3,000 units. The effect of the special offer will be to
increase the company's weekly profit by:
O a P330
O b P780
O c P12,650
Od P19,700
Transcribed Image Text:35. X Co generates a 12 per cent contribution on its weekly sales of P280,000. A new product, Z, is to be introduced at a special offer price in order to stimulate interest in all the company's products, resulting in a 5 per cent increase in weekly sales of the company's other products. Product Z will incur a variable unit cost of P2.20 to make and PO.15 to distribute. Weekly sales of Z, at a special offer price of P1.90 per unit, are expected to be 3,000 units. The effect of the special offer will be to increase the company's weekly profit by: O a P330 O b P780 O c P12,650 Od P19,700
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