Anna Corporation provided the following information about their product: Cost per unit: Direct Materials 7 Direct Labor Variable Factory Overhead Fixed Factory Overhead (based on a normal capacity Of 10,000 units) Fixed Factory Overhead Total Fixed Operating Cost 40,000 20,000 25/unit Variable selling and administrative expenses Selling Price 12,000 Produced unit 10,000 Sold unit 2.
Anna Corporation provided the following information about their product: Cost per unit: Direct Materials 7 Direct Labor Variable Factory Overhead Fixed Factory Overhead (based on a normal capacity Of 10,000 units) Fixed Factory Overhead Total Fixed Operating Cost 40,000 20,000 25/unit Variable selling and administrative expenses Selling Price 12,000 Produced unit 10,000 Sold unit 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Kindly answer the ff requirements
Transcribed Image Text:Anna Corporation provided the following information about their product:
Cost per unit:
Direct Materials
7
Direct Labor
Variable Factory Overhead
3
Fixed Factory Overhead
(based on a normal capacity
Of 10,000 units)
Fixed Factory Overhead
2
Total Fixed Operating Cost
40,000
20,000
25/unit
Variable selling and administrative expenses
Selling Price
12,000
Produced
unit
10,000
Sold
unit
Transcribed Image Text:Requirement:
1. Their break-even sales.
2. Their sold units to generate a net profit of P20,000 before tax.
Their sold units to generate a 10% income based on sales
4. Their selling price/unit to achieve a net income of P21,000 before tax, assuming that the
company shall be spending an additional P15,000 for advertising in order to increase its present
sales volume by 20%.
3.
5. Considering your recommended SPU in #4 and further assuming that the total fixed costs
inclusive of advertising amount to 75,000, their break-even sales in units.
6. Supposing that the total break-even sales were P350,000 and considering the given fixed costs,
their maximum amount that they could spend for advertising?
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