C. $1,060,000.D. $1,080,000.PROBLEM 4The following is Unknown Corporation's contribution format income statement for last month:SalesP 2,000,000Variable Costs1.400.000Contribution Margin600,000Fixed Costs360,000Profit240,000The company has no beginning or ending inventories. A total of 40,000 units were producedand sold last month.Required: (1 point for each requirement)Compute for the following items:a. Selling price per unitb. Variable cost per unit2nd semester AY 2021- 2022Page 5 of 6C.Contribution margin per unitd. Contribution margin ratioe. Breakeven point in pesosf. Breakeven point in unit salesg.If breakeven sales in units will increase by 10,000 units, how much will be theincrease/decrease in profits?h. If breakeven sales in units will decrease by 4,000 units, how much will be theincrease/decrease in profits?

The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…

D. $1,080,000. PROBLEM 4 The following is Unknown Corporation's contribution format income statement for last month: Sales P 2,000,000 Variable Costs 1.400,000 Contribution Margin 600,000 Fixed Costs 360,000 Profit 240,000

D. $1,080,000. PROBLEM 4 The following is Unknown Corporation's contribution format income statement for last month: Sales P 2,000,000 Variable Costs 1.400,000 Contribution Margin 600,000 Fixed Costs 360,000 Profit 240,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

C. $1,060,000.
D. $1,080,000.
PROBLEM 4
The following is Unknown Corporation's contribution format income statement for last month:
Sales
P 2,000,000
Variable Costs
1.400.000
Contribution Margin
600,000
Fixed Costs
360,000
Profit
240,000
The company has no beginning or ending inventories. A total of 40,000 units were produced
and sold last month.
Required: (1 point for each requirement)
Compute for the following items:
a. Selling price per unit
b. Variable cost per unit
2nd semester AY 2021- 2022
Page 5 of 6
C.
Contribution margin per unit
d. Contribution margin ratio
e. Breakeven point in pesos
f. Breakeven point in unit sales
g.
If breakeven sales in units will increase by 10,000 units, how much will be the
increase/decrease in profits?
h. If breakeven sales in units will decrease by 4,000 units, how much will be the
increase/decrease in profits?

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