15. Yamyam Company is considering introducing a new product that will require a P250,000
investment of capital. The necessary funds would be raised through a bank loan at an
interest rate of 8%. The fixed operating costs associated with the product would be
P122,500 while the variable cost ratio would be 58%. Assuming a selling price of P15 per
unit, determine the number of units (rounded to the nearest whole unit) Yamyam would
have to sell to generate earnings before interest and taxes (EBIT) of 32% of the amount of
capital invested in the new product.
a. 35,318 units c. 32,143 units
b. 25,575 units d. 23,276 units
STANDARD COSTS AND VARIANCE ANALYSIS
Bạn đang xem 15. - KUPDF COM MAS TEST BANK QUESTION
