For items 22 to 24: The Warner Company sells its only pro the variable costs amount to P21 per unit. Fixed cost for each year is P270,000. 22. Assuming the desired profit for next year (if all costs and selling price remains the same) is placed at P90,000, what is the margin of safety in units? A. 30,000 B. 20,000 C. 10,000 D. 40,000 23. What will be the projected sales in pesos with such desired profits of P90,000? A. P 900,000 B. P 1,200,000 C. P 300,000 D. P 600,000 24. If instead, the desired profit is 5% of sales, how many units must be sold to achieve such A. 36,000 B. 40,000 C. 25,714 D. 31500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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For items 22 to 24: The Warner Company sells its only product for P30 and
the variable costs amount to P21 per unit. Fixed cost for each year is
P270,000.
22. Assuming the desired profit for next year (if all costs and selling price
remains the same) is placed at P90,000, what is the margin of safety in
units?
A. 30,000
B. 20,000
C. 10,000
D. 40,000
23. What will be the projected sales in pesos with such desired profits of
P90,000?
A. P 900,000
B. P 1,200,000
C. P 300,000
D. P 600,000
24. If instead, the desired profit is 5% of sales, how many units must be
sold to achieve such
A. 36,000
B. 40,000
C. 25,714
D. 31500
Transcribed Image Text:For items 22 to 24: The Warner Company sells its only product for P30 and the variable costs amount to P21 per unit. Fixed cost for each year is P270,000. 22. Assuming the desired profit for next year (if all costs and selling price remains the same) is placed at P90,000, what is the margin of safety in units? A. 30,000 B. 20,000 C. 10,000 D. 40,000 23. What will be the projected sales in pesos with such desired profits of P90,000? A. P 900,000 B. P 1,200,000 C. P 300,000 D. P 600,000 24. If instead, the desired profit is 5% of sales, how many units must be sold to achieve such A. 36,000 B. 40,000 C. 25,714 D. 31500
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