The manager of Bernadette Company bas a plan to increase sales volume ut the store. The average operating results for each week are given belovw: Sales revenue P120,000 Variable costs 90,000 Fixed costs for one week 20,000 The manager plans to bring shoppers into the store by having a week raffle for a prize of P2,000. For every twenty pesos of merchandise purchased. the shopper will receive a numbered ticket for the raffle. The variable cost to print and distribute the tickets has been estimated at P0.40 per ticket. Promotion and other fixed costs in connection with the raffle have been estimated at P1,000 per week. The manager estimated that sales can be doubled with the weekly raffle. The regional manager is skeptical and believes that the cost of promotion will be vary high although it may inerease sales slightly to P130,000 a week. REQUIRED: 1. Compute the average weekly net income they are making at present without the raffle. 2. Compute the sales revenue required to break-even without the raffle. : Compute the sales revenue required to break-even with the raffle.

The manager of Bernadette Company bas a plan to increase sales volume ut the store. The average operating results for each week are given belovw: Sales revenue P120,000 Variable costs 90,000 Fixed costs for one week 20,000 The manager plans to bring shoppers into the store by having a week raffle for a prize of P2,000. For every twenty pesos of merchandise purchased. the shopper will receive a numbered ticket for the raffle. The variable cost to print and distribute the tickets has been estimated at P0.40 per ticket. Promotion and other fixed costs in connection with the raffle have been estimated at P1,000 per week. The manager estimated that sales can be doubled with the weekly raffle. The regional manager is skeptical and believes that the cost of promotion will be vary high although it may inerease sales slightly to P130,000 a week. REQUIRED: 1. Compute the average weekly net income they are making at present without the raffle. 2. Compute the sales revenue required to break-even without the raffle. : Compute the sales revenue required to break-even with the raffle.

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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