10. Sam Company manufactures a single product. In the prior year, the company had sales of
P90,000, variable costs of P50,000, and fixed costs of P30,000. Sam expects its cost
structure and sales price per unit to remain the same in the current year, however total
sales are expected to increase by 20 percent. If the current year projections are realized,
net income should exceed the prior year’s net income by:
a. 100 percent. c. 20 percent.
b. 80 percent. d. 50 percent.
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