Guiller Company's projected profit for the coming year follows TOTAL PER UNIT Sales Variable costs Contribution margin Fixed cost P2,480,000 1,488,000 992,000 626,400 P 365,600 P 20.00 12.00 P 8.00 Operating income Required 1.Compute the break-even point in units 2.Compute the break-even point in pesos 3.Compute the contribution margin ratio 4.Using the projected sales for the coming year, compute the margin of safety and - margin of safety ratio.

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.