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5.The break-even sales a. 10,000 units b. 11,250 units c. 16,000 units d. 18,000 units 6. How much is the income (loss) if the company sells all the units it can produce a. P (87,500) b. P122,500 с. Р300,000 d. P330,000 7. If the company desires to earn P400,000 before tax at full capacity, what selling price must be charged a. P 80.00 b. Р 90.00 c. P 95.00 d. P100.00

5.The break-even sales a. 10,000 units b. 11,250 units c. 16,000 units d. 18,000 units 6. How much is the income (loss) if the company sells all the units it can produce a. P (87,500) b. P122,500 с. Р300,000 d. P330,000 7. If the company desires to earn P400,000 before tax at full capacity, what selling price must be charged a. P 80.00 b. Р 90.00 c. P 95.00 d. P100.00

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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The Orange Company plans to sell a new product. The selling price is expected tn be P 150 per unit. The company is able to produce 15,000 units but the company's marketing manager feels that a more realistic level of sales would be 12,000 units Variable cost is estimated at P70 per unit. Total fixed costs will be P 900,000
Transcribed Image Text:The Orange Company plans to sell a new product. The selling price is expected tn be P 150 per unit. The company is able to produce 15,000 units but the company's marketing manager feels that a more realistic level of sales would be 12,000 units Variable cost is estimated at P70 per unit. Total fixed costs will be P 900,000
5.The break-even sales a. 10,000 units b. 11,250 units c. 16,000 units d. 18,000 units 6. How much is the income (loss) if the company sells all the units it can produce a. P (87,500) b. P122,500 с. Р300,000 d. P330,000 7. If the company desires to earn P400,000 before tax at full capacity, what selling price must be charged a. P 80.00 b. Р 90.00 c. P 95.00 d. P100.00 Donna Company manufactures and sells two products: Product A and Product B. The two products have the following characteristics Product B P30.00 Selling price per unit Sales revenue Variable cost per unit Product A P 50.00 750,000 30.00 900,000 24.00 Total fixed cost for the company was P320,000 but increase to P400,000 at production levels over 100,000. Selling price and variable cost per unit are the same at all production levels 8.Assuming a constant product mix, what is the break-even in units? a. 10,000 units b. 16,000 units c. 25,000 units d. 30,000 units
Transcribed Image Text:5.The break-even sales a. 10,000 units b. 11,250 units c. 16,000 units d. 18,000 units 6. How much is the income (loss) if the company sells all the units it can produce a. P (87,500) b. P122,500 с. Р300,000 d. P330,000 7. If the company desires to earn P400,000 before tax at full capacity, what selling price must be charged a. P 80.00 b. Р 90.00 c. P 95.00 d. P100.00 Donna Company manufactures and sells two products: Product A and Product B. The two products have the following characteristics Product B P30.00 Selling price per unit Sales revenue Variable cost per unit Product A P 50.00 750,000 30.00 900,000 24.00 Total fixed cost for the company was P320,000 but increase to P400,000 at production levels over 100,000. Selling price and variable cost per unit are the same at all production levels 8.Assuming a constant product mix, what is the break-even in units? a. 10,000 units b. 16,000 units c. 25,000 units d. 30,000 units
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