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e recommended sales price.

e recommended sales price.

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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based on full costs. 12.20 Revo, Inc. is considering changing its sales price of Product A which is presentiy Dar dec Increases and decreases of both 10% and 25%, as well as increases in advertising considered, with the following estimated results for coming year: being are Res 0Estimated advertising ap In Price Estimated units sales P210,000 250,000 300,000 450,000 -25% 200,000 190,000 170,000 150,000 130,000 -10% Ca No change +10%.009 +25% 550,000 The company has the necessary flexibility in its production capacity to meet these volume levels. The variable manufacturing costs per unit is estimated to be P7.50 in coming year. Required: Determine the recommended sales price.
Transcribed Image Text:based on full costs. 12.20 Revo, Inc. is considering changing its sales price of Product A which is presentiy Dar dec Increases and decreases of both 10% and 25%, as well as increases in advertising considered, with the following estimated results for coming year: being are Res 0Estimated advertising ap In Price Estimated units sales P210,000 250,000 300,000 450,000 -25% 200,000 190,000 170,000 150,000 130,000 -10% Ca No change +10%.009 +25% 550,000 The company has the necessary flexibility in its production capacity to meet these volume levels. The variable manufacturing costs per unit is estimated to be P7.50 in coming year. Required: Determine the recommended sales price.
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