7. Thomas Company sells products X, Y, and Z. Thomas sells 3 units of X for each unit of Z, and 2 units of Y for each unit of X. The contribution margins are P1.00 per unit of X, P1.50 per 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 c. 360,000 d. 400,000 e. None of these%; 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 of Y for each unit of X. The contribution margins are P1.00 per unit of X, P1.50 per 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 c. 360,000 d. 400,000 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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12. Ginger Corp. sells a product for P5 per unit. The fixed expenses are P210,000 and the unit variable expenses are 60% of the selling price. What sales would be necessary in order for Ginger Corp. to realize a profit of 10% of sales?
4.13 A company produces and sells two products at unit contribution margins of P4 for A and P10 for B. Fixed costs are P21,000. Instructions: If the planned sales mix is five units of A for each unit of B, what would be the breakeven point in units. (Indicate the product name and its corresponding number of units.)
A CERTAIN PRODUCT SELLS FOR $55. IT HAS VARIABLE COSTS OF $33 PER UNIT AND FIXED COSTS OF $300,000 PER YEAR. HOW MANY THE PRODUCTS MUST COMPANY MANUFACTURE TO BREAK EVEN?
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A product sells for $30 per unit and has variable costs of $18.00 per unit. The fixed costs are $960,000. If the variable costs per unit were to decrease to $16.50 per unit, fixed costs increase to $1,080,000, and the selling price does not change, break-even point in units would: Multiple Choice O O Equal 6,000. Increase by 24,828. Not change. Increase by 4,000. Decrease by 24,828.
Kerrigan Ltd makes and sells product A. The current selling price is £11 and the total of variable costs per unit is £6. The fixed costs of production are £350,000 and the company currently sells 75,000 units. Required: (a) Calculate the break-even point (in units and revenues) of product A for Kerrigan Ltd. ] (b) Calculate the profit made on sales of 75,000 units. [] (c) The company will make an advertising campaign costs £10,000 and will improve the product specifications, which will increase the variable cost per unit by £1. This is expected to allow the company to increase the selling price to £13 and the sales is expected to be 80,000 unites. Calculate the new profit figure for the improved product.
National Company sells two types of computer chips. The sales mix is 30% (X-Chip) and 70% (Y-Chip). Q-Chip has variable costs per unit of P30 and a selling price of P50. Y-Chip has variable costs per unit of P35 and a selling price of P65. National’s fixed costs are P540,000. How many units of X-Chip would be sold at the break-even point?
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