The information below relates to the only product of Catherine Company:Exercise 4-13Sales price per unitVariable cost per unitFixed costs per yearP4836P240,000REQUIRED:i 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.Exercise 4-14Cristina Corporation has fixed costs of P72,000 per month. It sells twoproducts as follows:SalesVariableContributionPriceCostMarginProduct AP20P8P12B 2014REQUIRED:1. What monthly peso sales volume is required to break-even if three units ofproduct A are sold with one unit of product B?2. What monthly peso sales volume is required to break-even if one unit ofproduct A is sold with three units of product B?

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Exercise 4-13 The information below relates to the only product of Catherine Company: Sales price per unit Variable cost per unit Fixed costs per year P48 36 P240,000 REQUIRED: i Compute the contribution margin ratio and the peso sales volume required to break-even. 2. Assuming that the company sells 75,000 units during the year, compute the margin of safety sales volume.

Exercise 4-13 The information below relates to the only product of Catherine Company: Sales price per unit Variable cost per unit Fixed costs per year P48 36 P240,000 REQUIRED: i Compute the contribution margin ratio and the peso sales volume required to break-even. 2. Assuming that the company sells 75,000 units during the year, compute the margin of safety sales volume.

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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Assignment # 3 (From Cost Volume Profit Analysis Mauro Products has a single product, a woven basket whose selling price is $ 15 and whose variable cost is $12 per unit. The company's monthly fixed expenses are $4,200. Required: 1. Solve for the company's break-even point in unit sales using the equation method. 2. Solve for the company's break-even point in sales dollars using the equation method and the CM ratio. 3. Solve for the company's break-even point in unit sales using the contribution margin method. 4. Solve for the company's break-even point in sales dollars using the contribution margin method and the CM ratio.
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Question 4 Ali Limited produces and sells two products. Product A sells for £12 per unit and has a total variable cost of £7.90, while Product B sells for £17 per unit and has a total variable cost of £11.20. For every 4 units of Product A sold, three of product B are sold. Ali Limited fixed costs are £131,850. Budgeted sales revenue is £428,500. Required: a) b) b) Calculate the Break-Even points in Units. Calculate the Margin of Safety in Units. Evaluate the relevance of Break-Even Analysis in decision making process.
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