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w much additional weekly sales would be necessary

w much additional weekly sales would be necessary

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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62

NUBD Co. is a convenience store that is currently open only Monday through Saturday. It considers opening every Sunday. The annual incremental fixed costs of Sunday openings are estimated at P52,000. The company's contribution margin ratio is 20%. It estimates that 60% of its Sunday sales to customers would be made on other days if the store were not open during Sundays. How much additional weekly sales would be necessary for NUBD Co. to attain an increase of P2,500 in weekly operating profit by opening every Sunday? * Sample format: 11,111
Transcribed Image Text:NUBD Co. is a convenience store that is currently open only Monday through Saturday. It considers opening every Sunday. The annual incremental fixed costs of Sunday openings are estimated at P52,000. The company's contribution margin ratio is 20%. It estimates that 60% of its Sunday sales to customers would be made on other days if the store were not open during Sundays. How much additional weekly sales would be necessary for NUBD Co. to attain an increase of P2,500 in weekly operating profit by opening every Sunday? * Sample format: 11,111
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