Drape Corp. would like to market a new product at a selling price of P15 per unit.  Fixed costs for this product are P1,000,000 for less than 500,000 units of output and P1,500,000 for 500,000 or more units of output.  The contribution margin percentage is 35%.  How many units of this product must be sold to earn a targeerating income of P1 million?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Drape Corp. would like to market a new product at a selling price of P15 per unit.  Fixed costs for this product are P1,000,000 for less than 500,000 units of output and P1,500,000 for 500,000 or more units of output.  The contribution margin percentage is 35%.  How many units of this product must be sold to earn a targeerating income of P1 million?

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