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What would the profit be

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Question - A manufacturer produces a product that sells for P10.00 per unit. Variable cost per unit are P6.00 and total fixed costs are P120,000. At this selling price, the company earns a profit equal ro 10% of total peso sales. By reducing its selling price to P9.00 per unit, the manufacturer can increase its unit sales volume by 25%. Assume that there are no taxes and that total fixed costs and variable cost per unit remain unchanged. If the selling price were reduced to P9.00 per unit, what would the profit be?

Reference no: EM132800768

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