I PDB Manufacturing Corp. produces and sells a single product. The selling price isP25 and the variable costs is P15 per unit. The corporation's fixed costs isP100,000 per month. Average monthly sales is 11.000 units.1. The corporation's contribution margin per unit and as a percent of sales (CMR)is?2. The corporation's break-even point is?3. If the corporation desires to eam profit of P20,000 before tax, it must generatesales of?4. If the corporation pays corporate income tax at the rate of 25%, and it desires toeam after-tax profit of P21,000, it must generate sales of?5. With an average monthly sale of 11,000 units, the corporation's margin of safetyis?6. The margin of safety ratio and the break-even sales ratio are?7. If fixed costs will increase by P20,000, the break even point in units willincrease(decrease) by?8. If variable costs per unit will go up by P5, the peso break-even sales will increase(decrease) to?9. If selling price will increase to P30, the break-even point in units will?10. At the present average monthly sales of 11.000 units, the corporation'soperating leverage factor (OLF) is?

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I PDB Manufacturing Corp. produces and sells a single product. The selling price is P25 and the variable costs is P15 per unit. The corporation's fixed costs is P100,000 per month. Average monthly sales is 11,000 units. 1. The corporation's contribution margin per unit and as a percent of sales (CMR) is? 2. The corporation's break-even point is? 3. If the corporation desires to earn profit of P20,000 before tax, it must generate sales of?

I PDB Manufacturing Corp. produces and sells a single product. The selling price is P25 and the variable costs is P15 per unit. The corporation's fixed costs is P100,000 per month. Average monthly sales is 11,000 units. 1. The corporation's contribution margin per unit and as a percent of sales (CMR) is? 2. The corporation's break-even point is? 3. If the corporation desires to earn profit of P20,000 before tax, it must generate sales of?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

I PDB Manufacturing Corp. produces and sells a single product. The selling price is
P25 and the variable costs is P15 per unit. The corporation's fixed costs is
P100,000 per month. Average monthly sales is 11.000 units.
1. The corporation's contribution margin per unit and as a percent of sales (CMR)
is?
2. The corporation's break-even point is?
3. If the corporation desires to eam profit of P20,000 before tax, it must generate
sales of?
4. If the corporation pays corporate income tax at the rate of 25%, and it desires to
eam after-tax profit of P21,000, it must generate sales of?
5. With an average monthly sale of 11,000 units, the corporation's margin of safety
is?
6. The margin of safety ratio and the break-even sales ratio are?
7. If fixed costs will increase by P20,000, the break even point in units will
increase(decrease) by?
8. If variable costs per unit will go up by P5, the peso break-even sales will increase
(decrease) to?
9. If selling price will increase to P30, the break-even point in units will?
10. At the present average monthly sales of 11.000 units, the corporation's
operating leverage factor (OLF) is?

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