1. Pretty sells a single product for P50 that has a variable cost of P30. Fixed costs amount to P5 per unit when anticipated sales targets are met. If the company sells one unit in excess of its break-even volume, the bottom-line profit will be:

1. Pretty sells a single product for P50 that has a variable cost of P30. Fixed costs amount to P5 per unit when anticipated sales targets are met. If the company sells one unit in excess of its break-even volume, the bottom-line profit will be:

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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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

4. A recent income statement of Fox Corporation reported the
following data:
Sales Revenue
P 3,600,000
1,600,000
1,000,000
Variable costs
Fixed costs
If these data are based on the sale of 10,000 units, the break-even
point in units would be:
5. A recent income statement of Yale Corporation reported the
following data:
Sales Revenue
P2,500,000
1,500,000
8 00,000
If these data are based on the sale of 5,000 units, the break-even
Variable costs
Fixed costs
sales would be:

1. Pretty sells a single product for P50 that has a variable cost of P30.
Fixed costs amount to P5 per unit when anticipated sales targets
are met. If the company sells one unit in excess of its break-even
volume, the bottom-line profit will be:
2. At a volume of 15,000 units, Boston reported sales revenues of
P600,000, variable costs of P225,000, and fíxed costs of P120,000.
The company's contribution margin per unit is:
3. A recent income statement of Banks Corporation reported the
following data:
Sales Revenue
P 8,000,000
5,000,000
Variable costs
2,200,000
If these data are based on the sale of 20,000 units, the contribution
Fixed costs
margin per
unit would be:

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