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CoursHeroTranscribedText: Anliao Ski Company recently expanded its manufacturing capacity to allow it to product up...

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Accounting

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CoursHeroTranscribedText: Anliao Ski Company recently expanded its manufacturing capacity to allow it to product up to 15,000 pairs of cross-country skis of either the mountaineering mode or the touring model. The sales department assures management that it can sell between 9,000 and 13,000 pairs (units) of either product this year. Because the models are very similar, Anilao Ski will produce only one of the two models. The following data were compiled by the accounting department. Mountaineering Touring Selling price per unit P88.00 80.00 Variable cost per unit 52.80 52.80 Fixed costs will total P369,600 if the mountaineering model is produced but will be only P316,800 if the touring model is produced. Anilao Ski Company is subject to a 40% income tax rate. The total sales revenue at which Anilao Ski Company would make the same profit or loss regardless of the ski model it decided to produce is P422,400 C P924,000 C P880,000

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