Transcribed Image Text: Mark Pro produces and sells a single product. Information on its costs follow: Variable costs: SG&A P2 per unit Production P4 per

Transcribed Image Text: Mark Pro produces and sells a single product. Information on its costs follow:
Variable costs:
SG&A
P2 per unit
Production
P4 per unit
Fixed costs:
SG&A
P12,000 per year
Production
P15,000 per year
1. Refer to Mark Pro. Assume Mark Pro produced and sold 5,000 units. At this level of activity, it produced a profit of
P18,000. What was Mark Pro sales price per unit?
2. Refer to Mark Pro. In the upcoming year, Mark Pro estimates that it will produce and sell 4,000 units. The variable costs
per unit and the total fixed costs are expected to be the same as in the current year. However, it anticipates a sales price of P16
per unit. What is Mark Pro ‘s projected margin of safety for the coming year?

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