Kumolo Co. is selling 1,200 units of rice cooker per year. The selling price per unit is P800 with 60% variable cost. At the current yearly sale, the company is experiencing a loss of P12,800 at a fixed cost of P396,800. 1. How much is the amount of contribution margin for 1,200 units? 2. How much is the contribution margin per unit? 3. How much is the new selling price per unit to increase sales by 5%? 4. How many units that sales will be increased? 5. What is the new Variable Cost Ratio after reduction of Variable Cost by 5%? 6. What is the Variable Cost per unit after the reduction of 5%? 7. How much is the amount of Sales under the business strategy? 8. How much is the amount of Contribution Margin under the business strategy? 9. How much is the adjusted Total Fixed Cost under the business strategy? 10, How much is the Operating Income or Loss under the business strategy?
Kumolo Co. is selling 1,200 units of rice cooker per year. The selling price per unit is P800 with 60% variable cost. At the current
yearly sale, the company is experiencing a loss of P12,800 at a fixed cost of P396,800.
1. How much is the amount of contribution margin for 1,200 units?
2. How much is the contribution margin per unit?
3. How much is the new selling price per unit to increase sales by 5%?
4. How many units that sales will be increased?
5. What is the new Variable Cost Ratio after reduction of Variable Cost by 5%?
6. What is the Variable Cost per unit after the reduction of 5%?
7. How much is the amount of Sales under the business strategy?
8. How much is the amount of Contribution Margin under the business strategy?
9. How much is the adjusted Total Fixed Cost under the business strategy?
10, How much is the Operating Income or Loss under the business strategy?
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