5. Andy Company, which produces and sells a single product, has provided the following data: Sales Selling price Variable expense Fixed expense 2,000 units P60 per unit P40 per unit P20,000 Consider each of the following questions independently. a. If the peso contribution margin per unit is increased by 10% and if total fixed expense is decreased by 20%, net operating income is expected to. b. If the sales volume decreases by 25% and the variable expense per unit increases by 15%, net operating income is expected to. c. If the company's fixed expenses increased by P8,000, how many units must be sold to reach a target net operating income of P36,000. d. If the company's sales volume in units decreases by 30%, and if it desires a targeted net operating income of P29,000, then the selling price should be.

5. Andy Company, which produces and sells a single product, has provided the following data: Sales Selling price Variable expense Fixed expense 2,000 units P60 per unit P40 per unit P20,000 Consider each of the following questions independently. a. If the peso contribution margin per unit is increased by 10% and if total fixed expense is decreased by 20%, net operating income is expected to. b. If the sales volume decreases by 25% and the variable expense per unit increases by 15%, net operating income is expected to. c. If the company's fixed expenses increased by P8,000, how many units must be sold to reach a target net operating income of P36,000. d. If the company's sales volume in units decreases by 30%, and if it desires a targeted net operating income of P29,000, then the selling price should be.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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