Sepgu Unlimited expects to produce 150,000 units of Product B during the year. The sales demand is expected to be 140,000 units. The following data were provided for pricing computations: Standard...

Sepgu Unlimited expects to produce 150,000 units of Product B during the year. The sales demand is expected to be 140,000 units. The following data were provided for pricing computations:

            Standard cost per unit:

                        Direct Material                           P8.20

                        Direct labor                                 4.50

                        Variable factory overhead               2.30

                        Fixed factory overhead                   2.00

                        Total standard product cost             P17.00

   Variable selling and administrative expenses                        P2.50

   Budgeted annual fixed selling & administrative expenses    P200,000

       Total capital employed                                                          800,000

     Expected rate of return on investment                              30%

REQUIRED:

1. Compute the expected selling price.


2. Compute the expected selling price if customers are entitled to a 3% sales discount.