Sales P 250,000 190,000 P 60,000 82,000 (P 22,000) Cost of sales Gross profit Expenses Net income P 135,000 of the cost of sales is variable, and P 67,000 of the expenses are fixed. 42% of The total fixed cost of sales and expenses can be eliminated if the product is dropped. What is the product elimination point?

Sales P 250,000 190,000 P 60,000 82,000 (P 22,000) Cost of sales Gross profit Expenses Net income P 135,000 of the cost of sales is variable, and P 67,000 of the expenses are fixed. 42% of The total fixed cost of sales and expenses can be eliminated if the product is dropped. What is the product elimination point?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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