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Andy Company, which produces and sells a single product, has provided the following data:

Sales .................................. 2,000 units

Selling price ...................... P60 per unit

Variable expense ............... P40 per unit

Fixed expense .................... P20,000

Consider each of the following questions independently.

a. If the peso contribution margin per unit is increased by 10% and if total fixed expense is decreased

by 20%, net operating income is expected to.

b. If the sales volume decreases by 25% and the variable expense per unit increases by 15%, net

operating income is expected to.

c. If the company's fixed expenses increased by P8,000, how many units must be sold to reach a

target net operating income of P36,000.

d. If the company's sales volume in units decreases by 30%, and if it desires a targeted net operating

income of P29,000, then the selling price should be.


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