How many pairs of touring model skis company have to sell

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Problem

Prelims Quiz: Auditing Specialized Industries A. Anilao Ski Company recently expanded its manufacturing capacity to allow it to produce up to 15,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 9,000 and 13,000 pairs (units) of either product this year. Because the models are very similar, Anilao Ski will produce only one of the two models. The following data were compiled by the accounting department. Selling price per unit Variable cost per unit Mountaineering P88.00 52.80 Touring P80.00 52.80. Fixed costs will total P369,600 if the mountaineering model is produced but will only be P316,800 if the touring model is produced. Anilao Ski Company is subject to a 40% income tax rate. Get the instant assignment help. If Anilao Ski Company desires an after-tax net income of P24,000, how many pairs of touring model skis will the company have to sell?

Reference no: EM133906335

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