Contribution Margin 360,000 Manufacturing 240,000 Selling and Administrative 90,000 330,000 Operating Profit 30,000 During December 2020, the entity manufactured a total of 80,000 units Required: Assuming that there was a proposal to increase fixed selling costs by P50,000, which would increase sales by 20%, how much would be the expected increase in the before-tax profit?
Contribution Margin 360,000 Manufacturing 240,000 Selling and Administrative 90,000 330,000 Operating Profit 30,000 During December 2020, the entity manufactured a total of 80,000 units Required: Assuming that there was a proposal to increase fixed selling costs by P50,000, which would increase sales by 20%, how much would be the expected increase in the before-tax profit?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 8P: Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning...
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Twenty Twenty One Corp.
Income Statement
For the month ended December 31, 2020
| Sales (P10/unit) | 900,000 | |
| Beginning Inventory | 125,000 | |
| Variable Cost of Goods Manufactured | 400,000 | |
| Total Goods Available for Sale | 525,000 | |
| Ending Inventory | 75,000 | |
| Variable Cost of Goods Sold | 450,000 | |
| Variable Selling Expense | 90,000 | 540,000 |
| Contribution Margin | 360,000 | |
| Manufacturing | 240,000 | |
| Selling and Administrative | 90,000 | 330,000 |
| Operating Profit | 30,000 |
During December 2020, the entity manufactured a total of 80,000 units
Required: Assuming that there was a proposal to increase fixed selling costs by P50,000, which would increase sales by 20%, how much would be the expected increase in the before-tax profit?
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