Pesos,P72,000P15,000Parcels20,000What is Sender's estimated cost for mailing 12,000 parcels?а. Р36,000b. P45,000e. None of these;c. P51,000d. P60,000answer is10. Product Cott has sales of P200,000, a contribution margin of 20%, and a margin of safetyof P80,000. What is Cott's fixed cost?a. P16,000e. None of these%;c. P80,000d. P96,000b. P24,000answer is11 .Del Co. has fixed costs of P100,000 and break-even sales of P800,000. What is the projectedprofit at P1,200,000 sales?a. P50,000b. P150,000с. Р200,000d. P400,000e. None of these;answer is12. During 2020, Thor Lab supplied hospitals with a comprehensive diagnostic kit for P1,200.At a volume of 8,000 kits, Thor had fixed costs of P1,000,000 and a profit before incometaxes of P200,000. Due to an adverse legal decision, Thor's 2021 liability insuranceincreased by P1,200,000 over 2020. Assuming the volume and other costs are unchanged,what should the 2021 price be if Thor is to make the same P200,000 profit before incometaxes?e. None of these;a. P1,200b. P1,350c. P1,500d. P2,400answer is 7. Thomas Company sells products X, Y, and Z. Thomas sells 3 units of X for each unit of Z,and 2 units ofY for each unit of X. The contribution margins are P1.00 per unit of X, P1.50unit of Y, and P3.00 per unit of Z. Fixed costs are P600,000. How many units of Xwould Thomas sell at the break-even point?a. 40,000b. 120,000perc. 360,000d. 400,000e. None of these;answer is8. Day Mail Order Co. applied the high-low method of cost estimation to customer order datafor the first four months of 2020. What is the estimated variable order filing cost componentper order?Orders1,2001,3001,8001,700CostsJanuaryFebruaryР3,1203,185March4,3203,895Aprila. P2.00с. Р2.48e. None of these;b. Р2.42d. P2.50answer is9. Sender, Inc. estimates parcel mailing costs using data shown on the chart next page:

10. Product Cott has sales of P200,000, a contribution margin of 20%, and a margin of safety of P80,000. What is Cott's fixed cost? a. P16,000 b. P24,000 c. P80,000 d. P96,000 e. None of these; answer is

10. Product Cott has sales of P200,000, a contribution margin of 20%, and a margin of safety of P80,000. What is Cott's fixed cost? a. P16,000 b. P24,000 c. P80,000 d. P96,000 e. None of these; answer is

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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Question

100%

Pesos,
P72,000
P15,000
Parcels
20,000
What is Sender's estimated cost for mailing 12,000 parcels?
а. Р36,000
b. P45,000
e. None of these;
c. P51,000
d. P60,000
answer is
10. Product Cott has sales of P200,000, a contribution margin of 20%, and a margin of safety
of P80,000. What is Cott's fixed cost?
a. P16,000
e. None of these%;
c. P80,000
d. P96,000
b. P24,000
answer is
11 .Del Co. has fixed costs of P100,000 and break-even sales of P800,000. What is the projected
profit at P1,200,000 sales?
a. P50,000
b. P150,000
с. Р200,000
d. P400,000
e. None of these;
answer is
12. During 2020, Thor Lab supplied hospitals with a comprehensive diagnostic kit for P1,200.
At a volume of 8,000 kits, Thor had fixed costs of P1,000,000 and a profit before income
taxes of P200,000. Due to an adverse legal decision, Thor's 2021 liability insurance
increased by P1,200,000 over 2020. Assuming the volume and other costs are unchanged,
what should the 2021 price be if Thor is to make the same P200,000 profit before income
taxes?
e. None of these;
a. P1,200
b. P1,350
c. P1,500
d. P2,400
answer is

7. Thomas Company sells products X, Y, and Z. Thomas sells 3 units of X for each unit of Z,
and 2 units ofY for each unit of X. The contribution margins are P1.00 per unit of X, P1.50
unit of Y, and P3.00 per unit of Z. Fixed costs are P600,000. How many units of X
would Thomas sell at the break-even point?
a. 40,000
b. 120,000
per
c. 360,000
d. 400,000
e. None of these;
answer is
8. Day Mail Order Co. applied the high-low method of cost estimation to customer order data
for the first four months of 2020. What is the estimated variable order filing cost component
per order?
Orders
1,200
1,300
1,800
1,700
Costs
January
February
Р3,120
3,185
March
4,320
3,895
April
a. P2.00
с. Р2.48
e. None of these;
b. Р2.42
d. P2.50
answer is
9. Sender, Inc. estimates parcel mailing costs using data shown on the chart next page:

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