b. The sales volume in units required for Jolina to earn an operating incomeof P600,000.The peso sales volume required for Jolina to earn an operating income ofс.P600,000.Exercise 4-13The information below relates to the only product of Catherine Company:Sales price per unitVariable cost per unitFixed costs per vearP4836P240,000REQUIRED:1. Compute the contribution margin ratio and the peso sales volume requiredto break-even.2. Assuming that the company sells 75,000 units during the year, compute themargin of safety sales volume. break-even in each of the following situations described below:Exercise 4-10Compute the number of units or product that must be soid if the company is to| The fixed cost is P312,000 a year. Each unit sold contributes P6 to therecovery of fixed cost and to profit.2 The variable cost is equal to 70% of sales revenue. Each unit of product issold for P20. The fixed costs amount to P420,000 per year.3. Contribution margin is equal to 28% of the revenue. Each unit of productsells for P50. The fixed cost is P210,000 for the year.4. A variable cost of P9 per unit of product is equal to 60% of the selling price.The fixed cost for the year amount to P390,000.5. Each unit of product sold contributes 30% of its revenues to the recovery offixed cost and to profit. The fixed cost amount to P420,000 for the year, andeach product is sold at a price of P10.Exercise 4-11By using the high-low method, Maricel Hotel Company estimates thetotal costs of providing room service. meals to amount to P60,000 per monthplus 30% of room service revenue.REQUIRED:1. What is the contribution margin ratio of providing rocservice meals?2. What is the break-even point for room service operations in terms of totalroom service revenue?3. What would vou expect to be the total cost of providing room service in amonth in which room service revenue amounts to P150,000?Exercise 4-12Jolina Company has fixed costs of P1,200,000, variable costs of P24 perunit, and a contribution margin ratio of 40%.REQUIRED:1. Compute for the following:a. Unit sales price, and unit contribution margin.

Note: Since you have posted multiple questions, we will solve the first question up to 3 sub-parts.…

Compute the number of units or product that must be soid if the company is to break-even in each of the following situations described below: | The fixed cost is P312,000 a year. Each unit sold contributes P6 to the recovery of fixed cost and to profit. 2. The variable cost is equal to 70% of sales revenue. Each unit of product is sold for P20. The fixed costs amount to P420,000 per year. 3. Contribution margin is equal to 28% of the revenue. Each unit of product sells for P50. The fixed cost is P210,000 for the year.

Compute the number of units or product that must be soid if the company is to break-even in each of the following situations described below: | The fixed cost is P312,000 a year. Each unit sold contributes P6 to the recovery of fixed cost and to profit. 2. The variable cost is equal to 70% of sales revenue. Each unit of product is sold for P20. The fixed costs amount to P420,000 per year. 3. Contribution margin is equal to 28% of the revenue. Each unit of product sells for P50. The fixed cost is P210,000 for the year.

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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