A company has a product named Health booster powder and it has a profit volumeratio of 28%.Fixed operating costs directly attributable to product during the 3rd quarter ofthe year 2019-20 is P2,80,000.Find: Sales revenue required to achieve a quarterly profit of P70,000.

Sales revenue to be made to earn desired profits: =(Fixed Cost incurred+ Profit) / Profit Volume…

Answered: A company has a product named Health…

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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A company has a product named Health booster powder and it has a profit volume ratio of 28%. Fixed operating costs directly attributable to product during the 3rd quarter of the year 2019-20 is P2,80,000. Find: Sales revenue required to achieve a quarterly profit of P70,000.