In 2019, Ramos Company presented the net income after(40%) tax of P5,520,000 as follows: Average sales price per box is P200; Variable cost of candy per box P100; Variable marketing cost P20; Annual fixed marketing cost P8,000,000; Annual fixed administrative cost P14,000,000. In 2020, to maintain the 2019 contribution margin ratio, Ramos will increase sales price per box due to increase in cost of candy per box by 15%. All other cost remain the same. What is the new break-even sales volume? a.244,444 b.338,462 c.480,000 d.275,000 In 2020, to maintain the 2019 net income after tax and sales price P200 per box, what is the sales amount needed in spite of 15% increase in variable cost of candy? a.P78,000,000 b.P96,000,000 c.P55,000,000 d.P67,692,308
In 2019, Ramos Company presented the net income after(40%) tax of P5,520,000 as follows: Average sales price per box is P200; Variable cost of candy per box P100; Variable marketing cost P20; Annual fixed marketing cost P8,000,000; Annual fixed administrative cost P14,000,000. In 2020, to maintain the 2019 contribution margin ratio, Ramos will increase sales price per box due to increase in cost of candy per box by 15%. All other cost remain the same. What is the new break-even sales volume? a.244,444 b.338,462 c.480,000 d.275,000 In 2020, to maintain the 2019 net income after tax and sales price P200 per box, what is the sales amount needed in spite of 15% increase in variable cost of candy? a.P78,000,000 b.P96,000,000 c.P55,000,000 d.P67,692,308
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2019, Ramos Company presented the net income after(40%) tax of P5,520,000 as follows: Average sales price per box is P200; Variable cost of candy per box P100; Variable marketing cost P20; Annual fixed marketing cost P8,000,000; Annual fixed administrative cost P14,000,000.
In 2020, to maintain the 2019 contribution margin ratio, Ramos will increase sales price per box due to increase in cost of candy per box by 15%. All other cost remain the same. What is the new break-even sales volume?
a.244,444
b.338,462
c.480,000
d.275,000
In 2020, to maintain the 2019 net income after tax and sales price P200 per box, what is the sales amount needed in spite of 15% increase in variable cost of candy?
a.P78,000,000
b.P96,000,000
c.P55,000,000
d.P67,692,308
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