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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need an answer for the first question. (Letter A) Thank you!
Transcribed Image Text: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
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.
15%, net
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