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Question - In 2019, Frieda Company sold its single product for Php10 each. Variable manufacturing costs amounted to Php2.00 per unit. The company needed to sell 17,600units last year in order to breakeven. The net after-tax income last year was Php4,435.20 subjected to a tax rate of 30%. Frieda's expects that sales price will increase to Php12.00, variable manufacturing costs will increase by 1/2 and that fixed costs will increase by 8%. If Frieda desires to maintain the same contribution margin rate as last year, what should its selling price be in 2019?
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