Solution-What should be the operating income from product g

What should be the operating income from product g

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Reference no: EM132739049

Wilson Co. prepared the following preliminary forecast concerning product G for next year assuming no expenditure for advertising:

Selling price per unit P 10

Units sales 100,000

Variable costs P600,000

Fixed costs P300,000

Problem 1: Based on a market study in December of this year, Wilson estimated that it could increase the unit selling price by 15% and increase the unit sales volume by 10% if P100,000 were spent on advertising. Assuming that Wilson incorporates these changes in its forecast, what should be the operating income from product G?

A. P175,000 C. P205,000

B. P190,000 D. P365,000

Reference no: EM132739049

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What should be the operating income from product g

Reference no: EM132739049

Reference no: EM132739049

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