Genie's Lamps, a Philippine-based manufacturer and exporter of decorative lamps to the Kingdom of Saudi Arabia, has the following weekly data for its lamp sales: Sales (100 lamps @ Php500) Less cost of goods sold: Php50,000 Variable manufacturing costs Fixed manufacturing costs Php20,000 5,000 25,000 Php25,000 Gross Margin Less selling and admin expenses: Variable Php10,000 5,000 Fixed 15,000 Php10,000 Net Income 1. Find the firm's break-even level. 2. Determine the necessary output level if the firm wants to increase its weekly net income by 75% withou changing the price. 3. Find the firm's new break-even output if it builds a new plant that will raise fixed manufacturing costs to Php10,000 but decreases variable manufacturing cost to Php150 per unit. Assume average variable selling expenses, fixed selling expenses, and selling price remain the same.

Genie's Lamps, a Philippine-based manufacturer and exporter of decorative lamps to the Kingdom of Saudi Arabia, has the following weekly data for its lamp sales: Sales (100 lamps @ Php500) Less cost of goods sold: Php50,000 Variable manufacturing costs Fixed manufacturing costs Php20,000 5,000 25,000 Php25,000 Gross Margin Less selling and admin expenses: Variable Php10,000 5,000 Fixed 15,000 Php10,000 Net Income 1. Find the firm's break-even level. 2. Determine the necessary output level if the firm wants to increase its weekly net income by 75% withou changing the price. 3. Find the firm's new break-even output if it builds a new plant that will raise fixed manufacturing costs to Php10,000 but decreases variable manufacturing cost to Php150 per unit. Assume average variable selling expenses, fixed selling expenses, and selling price remain the same.

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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