Durian Corporation has the following sales and costs structure: Unit sales price, P500 Unit variable costs, P300 Total fixed costs, P8 million Sales volume, 75,000 units Required: 1. Based on the original data, determine the CMR, BEP in pesos, operating profit, MSR, and the DOL. 2. Considering the following options to change the variables of profit, determine the new CMR, BEP in pesos, operating profit, MSR, and DOL. a. Unit sales price decreases by 15%.Unit variable costs decrease by 10%. c. Total fixed costs and expenses decrease by P800,000. d. Quantity sold decreases by 10,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Durian Corporation has the following sales and costs structure: Unit sales price, P500 Unit variable costs, P300 Total fixed costs, P8 million Sales volume, 75,000 units Required:

1. Based on the original data, determine the CMR, BEP in pesos, operating profit, MSR, and the DOL.

2. Considering the following options to change the variables of profit, determine the new CMR, BEP in pesos, operating profit, MSR, and DOL. a. Unit sales price decreases by 15%.Unit variable costs decrease by 10%. c. Total fixed costs and expenses decrease by P800,000. d. Quantity sold decreases by 10,000.

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