Solution-How many surge protectors must brunei sell

How many surge protectors must brunei sell

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Reference no: EM132739041

Brunei Corp. is developing a new product, surge protectors for high-voltage electrical flows. The cost information for the product are: Direct materials, P3.25 per unit; Direct labor, P4.00 per unit; Distribution, P0.75 per unit. The company will also be absorbing P120,000 of additional fixed costs associated with this new product. A corporate fixed charge of P20,000 currently absorbed by other products will be allocated to this new product.

Problem 1: How many surge protectors (rounded to the nearest hundred) must Brunei sell at a selling price of P14 per unit to increase after-tax income by P30,000? (effective income tax rate is 40%)

A. 10,700 C. 20,000

B. 12,100 D. 28,300

Reference no: EM132739041

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How many surge protectors must brunei sell

Reference no: EM132739041

Reference no: EM132739041

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