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If a company's variable costs are 70% of sales, which formula represents the computation of peso sales that will yield a profit equal to 10% of the amount of sales when P equals sales in pesos for the period and FC equals total fixed costs for the period? * O a. P = 2/FC O b. P = FC/.2 O CP - 27/FC

If a company's variable costs are 70% of sales, which formula represents the computation of peso sales that will yield a profit equal to 10% of the amount of sales when P equals sales in pesos for the period and FC equals total fixed costs for the period? * O a. P = 2/FC O b. P = FC/.2 O CP - 27/FC

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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QUESTION 27

Cost Accounting
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If a company's variable costs are 70% of sales, which formula represents the computation of peso sales that will yield a profit equal to 10% of the amount of sales when P equals sales in pesos for the period and FC equals total fixed costs for the period? * O a. P = 2/FC O b. P = FC/.2 O C.P = .27/FC O d. P = FC/.27
Transcribed Image Text:If a company's variable costs are 70% of sales, which formula represents the computation of peso sales that will yield a profit equal to 10% of the amount of sales when P equals sales in pesos for the period and FC equals total fixed costs for the period? * O a. P = 2/FC O b. P = FC/.2 O C.P = .27/FC O d. P = FC/.27
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