P5.33
P5.33
P49,920
P4,160x12=
P49,920
15,840=TFC +(5.33 x 2, 190)
15,840=TFC +11,680
P4,160
P8.10
TMC=4,160 +(5.33 x 1,500)
12, 155
÷ 1,500 = P8.10
Harry Manufacturing incurs annual fixed costs
of P250,000 in producing and selling a single
product. Estimated unit sales are 125,000. An aftertax income of P75,000 is desired by management.
The company projects its income tax rate at 40
percent. What is the maximum amount that Harry
can expend for variable costs per unit and still meet
its profit objective if the sales price per unit is
estimated at P6?​
a. P3.37 c. P3.00​
b. P3.59 d. P3.70​
ANSWER C​
Projected sales (125,000 x P6)
Less contribution margin:
Income before tax (75,000/0.60)
Add fixed cost
Variable costs
÷ number of units
Variable cost per unit
P750,000​
​
P125,000​
250,000
375,000​
P375,000​
125,000​
P
3.00​