Given the income statement of ABC Company Sales P400,000 Variable Cost (120,000) Contribution margin 280,000 Fixed Costs (200,000) Profit before taxes 80,000 Income Tax (20,000) Net Income Р 60,000
Given the income statement of ABC Company Sales P400,000 Variable Cost (120,000) Contribution margin 280,000 Fixed Costs (200,000) Profit before taxes 80,000 Income Tax (20,000) Net Income Р 60,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. What was ABC's break even point in pesos?
2. What was ABC's margin of safety?
3. What was ABC's degree of operating leverage?
Transcribed Image Text:Given the income statement of ABC Company
Sales
P400,000
Variable Cost
(120,000)
Contribution margin
280,000
Fixed Costs
(200,000)
Profit before taxes
80,000
Income Tax
(20,000)
Net Income
P 60,000
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