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CMR, BEP, sensitivity analysis. Wild's Company's income statement is shown below Total Per Unit P 150,000 P 5.00 90,000 3.00 60,000 P 2.00 50,000 P 10,000 Sales (30,000 units) Less: Variable costs Contribution margin Less: Fixed expenses Net Income Required: 1. Compute the contribution margin ratio, breakeven point in pesos, and operating income. 2. Calculate the new contribution margin ratio, breakeven point in pesos and operating profit under each of the changes below: a. Unit sales price increase by 15% b. Unit variable costs decrease by 25% c. Total fixed costs increase to P80,000 d. Unit sales price decreases by 20% and the sales volume increases by 20% e. The selling price increases by P 0,50 per unit, fixed costs increase by P10,000, and the sales volume decreases by 5% f. Variable costs increase by PO.20 per unit, the selling price increases by 12%, and the sales volume decreases by 10%

CMR, BEP, sensitivity analysis. Wild's Company's income statement is shown below Total Per Unit P 150,000 P 5.00 90,000 3.00 60,000 P 2.00 50,000 P 10,000 Sales (30,000 units) Less: Variable costs Contribution margin Less: Fixed expenses Net Income Required: 1. Compute the contribution margin ratio, breakeven point in pesos, and operating income. 2. Calculate the new contribution margin ratio, breakeven point in pesos and operating profit under each of the changes below: a. Unit sales price increase by 15% b. Unit variable costs decrease by 25% c. Total fixed costs increase to P80,000 d. Unit sales price decreases by 20% and the sales volume increases by 20% e. The selling price increases by P 0,50 per unit, fixed costs increase by P10,000, and the sales volume decreases by 5% f. Variable costs increase by PO.20 per unit, the selling price increases by 12%, and the sales volume decreases by 10%

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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CMR, BEP, sensitivity analysis. Wild's Company's income statement is shown below Per Unit P 5.00 3.00 P 2.00 Sales (30,000 units) Less: Variable costs Contribution margin Less: Fixed expenses Net Income Total P 150,000 90,000 60,000 50,000 P 10,000 Required: 1. Compute the contribution margin ratio, breakeven point in pesos, and operating income. 2. Calculate the new contribution margin ratio, breakeven point in pesos and operating profit under each of the changes below: a. Unit sales price increase by 15% b. Unit variable costs decrease by 25% c. Total fixed costs increase to P80,000 d. Unit sales price decreases by 20% and the sales volume increases by 20% e. The selling price increases by P 0,50 per unit, fixed costs increase by P10,000, and the sales volume decreases by 5% f. Variable costs increase by PO.20 per unit, the selling price increases by 12%, and the sales volume decreases by 10%
Transcribed Image Text:CMR, BEP, sensitivity analysis. Wild's Company's income statement is shown below Per Unit P 5.00 3.00 P 2.00 Sales (30,000 units) Less: Variable costs Contribution margin Less: Fixed expenses Net Income Total P 150,000 90,000 60,000 50,000 P 10,000 Required: 1. Compute the contribution margin ratio, breakeven point in pesos, and operating income. 2. Calculate the new contribution margin ratio, breakeven point in pesos and operating profit under each of the changes below: a. Unit sales price increase by 15% b. Unit variable costs decrease by 25% c. Total fixed costs increase to P80,000 d. Unit sales price decreases by 20% and the sales volume increases by 20% e. The selling price increases by P 0,50 per unit, fixed costs increase by P10,000, and the sales volume decreases by 5% f. Variable costs increase by PO.20 per unit, the selling price increases by 12%, and the sales volume decreases by 10%
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