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1. TechGate makes PS4 games with a selling price of P1,040.00 per CD with a variable cost of P624.00 per unit. The fixed cost for the period is P2,080,000. How many CDs should TechGate sell to breakeven?

1. TechGate makes PS4 games with a selling price of P1,040.00 per CD with a variable cost of P624.00 per unit. The fixed cost for the period is P2,080,000. How many CDs should TechGate sell to breakeven?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Breakeven Computation Directions: Analyze the given problems and compute for what is being asked. 1. TechGate makes PS4 games with a selling price of P1,040.00 per CD with a variable cost of P624.00 per unit. The fixed cost for the period is P2,080,000. How many CDs should TechGate sell to breakeven? 2. Adel and Tony run a small online business specializing in delivering organic fruit and vegetables to the local area. They buy from local farms and package these together in boxes. Each box costs P208.00 and is being sold at P500.00 per box. Other fixed costs incurred each year are as follows: Php Rent of delivery van 4,500 Rent of premises 10,500 Direct wages 10,000 Advertising 2,000 Calculate the break-even point in boxes (unit).
Transcribed Image Text:Breakeven Computation Directions: Analyze the given problems and compute for what is being asked. 1. TechGate makes PS4 games with a selling price of P1,040.00 per CD with a variable cost of P624.00 per unit. The fixed cost for the period is P2,080,000. How many CDs should TechGate sell to breakeven? 2. Adel and Tony run a small online business specializing in delivering organic fruit and vegetables to the local area. They buy from local farms and package these together in boxes. Each box costs P208.00 and is being sold at P500.00 per box. Other fixed costs incurred each year are as follows: Php Rent of delivery van 4,500 Rent of premises 10,500 Direct wages 10,000 Advertising 2,000 Calculate the break-even point in boxes (unit).
Directions: Analyze the balance sheet and compute for what is being asked. Exon Oil Company Balance Sheet For the year ended December 31, 201A $ million Assets Current Assets Inventories 8,745 Trade and associated company 18,865 Short term investment 125 Current tax receivable 78 Cash at bank 4,457 Total 32,270 Non-current Assets 35,008 Property, plant and equipment Intangible assets 1,350 Goodwill 2,994 5,892 Investments in associates Financial investments 2,139 Total 47,383 Total assets 79,653 Liabilities Current Liabilities 29,855 Account payables Finance debt 2,650 Tax payable 3,570 Unearned revenues 768 Total current liabilities 36,843 Non-Current Liabilities 3,458 Finance debt Bond payable 4,071 Wage payable 2,087 Interest payable 3,302 Total long-term liabilities 12,918 Total liabilities Equity Common stock 26,871 Retained Earning 3,021 Total equity 29,892 Total liabilities and equity 79,653 1. Compute for the current ratio and describe the enterprise's capability to pay short-term liabilities with current assets. 2. Compute for debt ratio to determine the relative value of a company's debt status.
Transcribed Image Text:Directions: Analyze the balance sheet and compute for what is being asked. Exon Oil Company Balance Sheet For the year ended December 31, 201A $ million Assets Current Assets Inventories 8,745 Trade and associated company 18,865 Short term investment 125 Current tax receivable 78 Cash at bank 4,457 Total 32,270 Non-current Assets 35,008 Property, plant and equipment Intangible assets 1,350 Goodwill 2,994 5,892 Investments in associates Financial investments 2,139 Total 47,383 Total assets 79,653 Liabilities Current Liabilities 29,855 Account payables Finance debt 2,650 Tax payable 3,570 Unearned revenues 768 Total current liabilities 36,843 Non-Current Liabilities 3,458 Finance debt Bond payable 4,071 Wage payable 2,087 Interest payable 3,302 Total long-term liabilities 12,918 Total liabilities Equity Common stock 26,871 Retained Earning 3,021 Total equity 29,892 Total liabilities and equity 79,653 1. Compute for the current ratio and describe the enterprise's capability to pay short-term liabilities with current assets. 2. Compute for debt ratio to determine the relative value of a company's debt status.
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