Dennis Goods Company prepared the following preliminary forecast concerning product G for the current year assuming no expenditure for advertising: Selling price per unit Unit sales Variable costs P10.00 100,000 P600,000 P300,000 |Fixed costs Based on a market study conducted, the company estimated that it could increase the anit selling price by 15% and increase the unit sales volume by 10% if P100,000 were spent on advertising.

Dennis Goods Company prepared the following preliminary forecast concerning product G for the current year assuming no expenditure for advertising: Selling price per unit Unit sales Variable costs P10.00 100,000 P600,000 P300,000 |Fixed costs Based on a market study conducted, the company estimated that it could increase the anit selling price by 15% and increase the unit sales volume by 10% if P100,000 were spent on advertising.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3PA

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O e. Sales - variable expenses + profit = fixed expenses For XYZ Company, how many units of their product would have to be sold to yield a target operating income of $210,000 for the financial year ending 2021, assuming variable costs are $50 per unit, total fixed costs are $90,000, and the unit selling price is $65? a. 14,000 units Ob. 6,000 units Oc. 20,000 units O d. 6,000 units OUS PAGE NEXT PAGE 16
QuestionHow many units of Product Excellence would have to be sold in October 2021 in order to generate an net income after tax of P22,500?
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Question 3: Oman Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs 445000 Variable Costs : 2020 105000 245000 2021 500000 150000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) P/V ratio, b) В.Е.P. c) Sales required to earn a profit of OMR 45000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 300000.
Question 5 ) Answer with Formulas
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