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A firm estimates that it will sell 100,000 units of its sole product in the coming period. It projects the sales price at P40 per unit, the CM ratio at 70 percent, and profit at P500,000. What is the firm budgeting for fixed costs in the coming period? * A

A firm estimates that it will sell 100,000 units of its sole product in the coming period. It projects the sales price at P40 per unit, the CM ratio at 70 percent, and profit at P500,000. What is the firm budgeting for fixed costs in the coming period? * A

FINANCIAL ACCOUNTING
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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A firm estimates that it will sell 100,000 units of its sole product in the coming period. It projects the sales price at P40 per unit, the CM ratio at 70 percent, and profit at P500,000. What is the firm budgeting for fixed costs in the coming period? * G
Transcribed Image Text:A firm estimates that it will sell 100,000 units of its sole product in the coming period. It projects the sales price at P40 per unit, the CM ratio at 70 percent, and profit at P500,000. What is the firm budgeting for fixed costs in the coming period? * G
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