Your CEO has limited knowledge of management accounting but of course, is vitally interested in forecasting profitability under different scenarios. He asked you, the management accountant, to begin your report by answering a few basic questions he's always wondered about. He has also given you some data to review and has asked you to report on the expected profitability under some given scenarios.

Question

Your CEO has limited knowledge of management accounting but of course, is vitally interested in forecasting profitability under different scenarios. He asked you, the management accountant, to begin your report by answering a few basic questions he's always wondered about. He has also given you some data to review and has asked you to report on the expected profitability under some given scenarios.
Company Data:

Company's average selling price (SP) per unit = P40

Product's variable cost per unit = P28

Company's budgeted fixed costs for the upcoming year are expected to be P 1,000,000
you need to complete the following:

Write a report of 200-300 words including the following