What is the effect on income

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Question - Machan Co.'s year-end income statement is as follows:

Sales (20,000 units) P360,000

Variable costs 220,000

Contribution margin P140,000

Fixed costs 105,000

Net income P 35,000

Management is unhappy with the results and plans to make some changes for next year. If management implements a new marketing program, fixed costs are expected to increase by P19,200 and variable costs to increase by P1 per unit. Unit sales are expected to increase by 15 percent. What is the effect on income if the foregoing changes are implemented?

Reference no: EM132576257

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