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Budgeted Income Statement For the Year Ended December 31 Sales Manufacturing costs: Variable P16,000,000 P7,200,000 2,340,000 Fixed overhead Gross margin Selling and administrative 9,540,000 6,460,000 costs: Commissions to agents Fixed marketing costs* Fixed administrative costs 2,400,000 120,000 1,800,000 Net operating income Less fixed interest cost Income before income 4,320,000 2,140,000 540,000 1,600,000 taxes Less income tax (30%) Net income 480,000 P1,120,000 The breakdown of the P2,400,000 cost figure follows: Salaries: Sales manager Salespersons Travel and entertainment Advertising Total P 100,000 600,000 400,000 1,300,000 P2,400,000 *. What is the breakeven point in pesos for next year assuming that the agents' commission rate is increased to 20%? A. P13,171,000 B. P15,000,000 C. P13,714,286 D. P12,750,000

Budgeted Income Statement For the Year Ended December 31 Sales Manufacturing costs: Variable P16,000,000 P7,200,000 2,340,000 Fixed overhead Gross margin Selling and administrative 9,540,000 6,460,000 costs: Commissions to agents Fixed marketing costs* Fixed administrative costs 2,400,000 120,000 1,800,000 Net operating income Less fixed interest cost Income before income 4,320,000 2,140,000 540,000 1,600,000 taxes Less income tax (30%) Net income 480,000 P1,120,000 The breakdown of the P2,400,000 cost figure follows: Salaries: Sales manager Salespersons Travel and entertainment Advertising Total P 100,000 600,000 400,000 1,300,000 P2,400,000 *. What is the breakeven point in pesos for next year assuming that the agents' commission rate is increased to 20%? A. P13,171,000 B. P15,000,000 C. P13,714,286 D. P12,750,000

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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Find the breakeven point for next year having 20% increased on commision rate?

Budgeted Income Statement For the Year Ended December 31 Sales Manufacturing costs: Variable Fixed overhead P16,000,000 P7,200,000 2,340,000 9,540,000 6,460,000 Gross margin Selling and administrative costs: 2,400,000 120,000 1,800,000 Commissions to agents Fixed marketing costs* Fixed administrative costs Net operating income Less fixed interest cost Income before income 4,320,000 2,140,000 _540,000 1,600,000 taxes Less income tax (30%) Net income 480,000 P1,120,000 The breakdown of the P2,400,000 cost figure follows: Salaries: Sales manager Salespersons Travel and entertainment Advertising Total P 100,000 600,000 400,000 1,300,000 P2,400,000 What is the breakeven point in pesos for next year assuming that the agents' commission rate is increased to 20%? A. P13,171,000 B. P15,000,000 C. P13,714,286 D. P12,750,000
Transcribed Image Text:Budgeted Income Statement For the Year Ended December 31 Sales Manufacturing costs: Variable Fixed overhead P16,000,000 P7,200,000 2,340,000 9,540,000 6,460,000 Gross margin Selling and administrative costs: 2,400,000 120,000 1,800,000 Commissions to agents Fixed marketing costs* Fixed administrative costs Net operating income Less fixed interest cost Income before income 4,320,000 2,140,000 _540,000 1,600,000 taxes Less income tax (30%) Net income 480,000 P1,120,000 The breakdown of the P2,400,000 cost figure follows: Salaries: Sales manager Salespersons Travel and entertainment Advertising Total P 100,000 600,000 400,000 1,300,000 P2,400,000 What is the breakeven point in pesos for next year assuming that the agents' commission rate is increased to 20%? A. P13,171,000 B. P15,000,000 C. P13,714,286 D. P12,750,000
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