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What is the impact of this change in profitability

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Question - Carl's firm produces cotton fabrics. He has Fixed costs of about P250,000 and has variable costs of around P400 on a monthly basis. Currently, Carl's firm sells 150 yards of cotton fabrics priced at P2,400 per unit.

How much is the current profitability of Carl's cotton business?

Carl would like to improve his price by 2% in the next reporting period. What is the impact of this change in profitability?

Carl would like to improve his Variable Costs by 2% in the next reporting period. What is the impact of this change in profitability?

Carl would like to improve the quantity sold by 10% in the next reporting period. What is the impact of this change in profitability?

Reference no: EM132862479

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