8. Harry Manufacturing incurs annual fixed costs of P250,000 in producing and selling a single
product. Estimated unit sales are 125,000. An after-tax income of P75,000 is desired by
management. The company projects its income tax rate at 40 percent. What is the
maximum amount that Harry can expend for variable costs per unit and still meet its profit
objective if the sales price per unit is estimated at P6?
a. P3.37 c. P3.00
b. P3.59 d. P3.70
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