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Find the minimum increase in peso sales

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Reference no: EM132576155

Question - Brynles Manufacturing Company produces two products for which the following data have been tabulated. Fixed manufacturing cost is applied at a rate of P1.00 per machine hour.

Per Unit XY-7 BD-4

Selling price P4.00 P3.00

Variable manufacturing cost P2.00 P1.50

Fixed manufacturing cost P0.75 P0.20

Variable selling cost P1.00 P1.00

The sales manager has had a P160,000 increase in the budget allotment for advertising and wants to apply the money to the most profitable product. The products are not substitutes for one another in the eyes of the company's customers.

The manager may devote the entire P160,000 to increased advertising for either XY-7 or BD-4.

The minimum increase in peso sales of either XY-7 or BD-4 required to offset the increased advertising is?

Reference no: EM132576155

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