MSQ-01 - Activity Cost & CVP Analysis (Final)

Singsing inc manufactures and sells key rings

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16. Singsing, Inc. manufactures and sells key rings embossed with college names and slogans. Last year, the key rings sold for P75 each, and the variable costs to manufacture them were P22.50 per unit. The company needed to sell 20,000 key rings to break-even. The net income last year was P50,400. The company expects the following for the coming year: The selling price of the key rings will be P90. Variable manufacturing costs per unit will increase by one-third. Fixed costs will increase by 10%. The income tax rate will remain unchanged. For the company to break-even the coming year, the company should sell
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