Please do not give solution in image format thanku A company decides to increase selling prices by 8% to cover a 6% increase in variable costs. They currently make aprofit of $26 400 on sales of $480 000 and fixed costs of $60 000. Determine their new profit.The new profit is: $ type your answer...

Lets understand the basics.Contribution margin is a margin generated on sale of single unit of…

Answered: A company decides to increase selling…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4: Preparing And Using Financial Statements

Section: Chapter Questions

Problem 1gM

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ACCOUNT
A company manufactures and sells a single product whose selling price is P500 and whose variable expense is P300 per unit. The company’s monthly fixed expense is P120,000. Required:1. Solve for the unit sales that are required to earn a target profit of P80,000. 2. If the company wants to earn a profit of P200,000, how much should be the sales revenue?

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A company decides to increase selling prices by 8% to cover a 6% increase in variable costs. They currently make profit of $26 400 on sales of $480 000 and fixed costs of $60 000. Determine their new profit. he new profit is: $ type your answer.....