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How many surge protectors must bruell electronics sell

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Question - Bruell Electronics Co. is developing a new product, surge protectors for high- voltage electrical flows. The cost information below relates to the product:

Unit Costs

Direct materials P3.25

Direct labor 4.00

Distribution 0.75

The company will also be absorbing P120,000 of additional fixed costs associated with this new product. A corporate fixed charge of P20,000 currently absorbed by other products will be allocated to this new product.

Bruell is subject to a tax rate of 30%. How many surge protectors (rounded to the nearest hundred) must Bruell Electronics sell at a selling price of P14 per unit to gain P30,000 additional income after taxes?

Reference no: EM133147013

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