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Golden Corporation provided the following data pertaining to its recently concluded operations: Sales P250,000 10,000 Units Sales (volume0 Total Variable costs P180,000 P50,000 Total fixed Costs Requirements: Management has proposed the following plans to be considered independently, for the coming operational period. You were tasked to present the effects of each plan on its present income before finalizing each. 1. Increase the unit sales by 40%; decrease in unit selling price by 20%; no change on the other costs 2. Increase the selling price per unit by 40%; decrease the variable costs per unit by 20%; increase the fixed costs by 50%; no change in volume 3. Increase the contribution margin by 20%; decrease the volume by 10%; decrease the fixed costs by P10,000 4. No change in selling price per unit and variable costs per units; however, fixed costs will be decreased by P20,000 5. No change in the selling price per unit; 40% decrease in unit variable costs; 20% increase in unit sales: fixed costs increase by 100%

Golden Corporation provided the following data pertaining to its recently concluded operations: Sales P250,000 10,000 Units Sales (volume0 Total Variable costs P180,000 P50,000 Total fixed Costs Requirements: Management has proposed the following plans to be considered independently, for the coming operational period. You were tasked to present the effects of each plan on its present income before finalizing each. 1. Increase the unit sales by 40%; decrease in unit selling price by 20%; no change on the other costs 2. Increase the selling price per unit by 40%; decrease the variable costs per unit by 20%; increase the fixed costs by 50%; no change in volume 3. Increase the contribution margin by 20%; decrease the volume by 10%; decrease the fixed costs by P10,000 4. No change in selling price per unit and variable costs per units; however, fixed costs will be decreased by P20,000 5. No change in the selling price per unit; 40% decrease in unit variable costs; 20% increase in unit sales: fixed costs increase by 100%

FINANCIAL ACCOUNTING
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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Pls, answer the ff. requirements

Golden Corporation provided the following data pertaining to its recently concluded operations: Sales P250,000 Units Sales (volume0 10,000 Total Variable costs P180,000 Total fixed Costs P50,000 Requirements: Management has proposed the following plans to be considered independently, for the coming operational period. You were tasked to present the effects of each plan on its present income before finalizing each. 1. Increase the unit sales by 40%; decrease in unit selling price by 20%; no change on the other costs 2. Increase the selling price per unit by 40%; decrease the variable costs per unit by 20%; increase the fixed costs by 50%; no change in volume 3. Increase the contribution margin by 20%; decrease the volume by 10%; decrease the fixed costs by P10,000 4. No change in selling price per unit and variable costs per units; however, fixed costs will be decreased by P20,000 5. No change in the selling price per unit; 40% decrease in unit variable costs; 20% increase in unit sales; fixed costs increase by 100%.
Transcribed Image Text:Golden Corporation provided the following data pertaining to its recently concluded operations: Sales P250,000 Units Sales (volume0 10,000 Total Variable costs P180,000 Total fixed Costs P50,000 Requirements: Management has proposed the following plans to be considered independently, for the coming operational period. You were tasked to present the effects of each plan on its present income before finalizing each. 1. Increase the unit sales by 40%; decrease in unit selling price by 20%; no change on the other costs 2. Increase the selling price per unit by 40%; decrease the variable costs per unit by 20%; increase the fixed costs by 50%; no change in volume 3. Increase the contribution margin by 20%; decrease the volume by 10%; decrease the fixed costs by P10,000 4. No change in selling price per unit and variable costs per units; however, fixed costs will be decreased by P20,000 5. No change in the selling price per unit; 40% decrease in unit variable costs; 20% increase in unit sales; fixed costs increase by 100%.
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