Advertising expense was not included in the above. Based on market study in December 2019, the company estimated that it could increase the unit selling price by 10% and increase the unit sales volume by 20% if P200,000 would be spent on advertising. If Omega DB will incorporate these changes in its 2019 forecast, what would be the operating income? a.P480,000 b.P720,000 c.P680,000 d.P420,000
Advertising expense was not included in the above. Based on market study in December 2019, the company estimated that it could increase the unit selling price by 10% and increase the unit sales volume by 20% if P200,000 would be spent on advertising. If Omega DB will incorporate these changes in its 2019 forecast, what would be the operating income? a.P480,000 b.P720,000 c.P680,000 d.P420,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Advertising expense was not included in the above. Based on market study in December 2019, the company estimated that it could increase the unit selling price by 10% and increase the unit sales volume by 20% if P200,000 would be spent on advertising. If Omega DB will incorporate these changes in its 2019
a.P480,000
b.P720,000
c.P680,000
d.P420,000
Transcribed Image Text:Omega DB, which is marketing a single product, has the following preliminary forecasts for
2019:
No. of units
Selling price per unit
Variable costs
150,000 units
P 15
P 1,200,000
850,000
Fixed costs
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