NUBD Co. incurs annual fixed costs of P250,000 in producing and selling a single product. Estimated unit sales are 125,000. An after-tax income of P75,000 is desired by management. The company projects its income tax rate at 25 percent. What is the maximum amount that NUBD can expend for variable costs per unit and still meet its profit objective if the sales price per unit is estimated at P6?

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