Reference no: EM132794250
The data below pertain to the forecasts of ABC Company for the upcoming year:
Total Cost Unit Cost
Sales (22,000 units) Php550,000 Php13.75
Raw materials 88,000 2.20
Direct labor 154,000 3.85
Variable overhead 44,000 1.10
Fixed overhead 198,000 1.65
Variable selling and administrative expenses 66,000
Fixed selling and administrative expenses 123,750
problem 1: How many units does ABC Company need to produce and sell to make a before-tax profit of 10% of sales?
Option 1: 65,000 units
Option 2: 90,000 units
Option 3: 25,000 units
Option 4: 36,562 units
problem 2: Assuming that ABC Company sells 80,000 units, what is the maximum that can be paid for an advertising campaign while still breaking even?
Option 1: P 558,250
Option 2: P 382,250
Option 3: P 74,250
Option 4: P 294,250
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