Mark Pro produces and sells a single product. Information on its costs follow:Variable costs:SG&AP2 per unitProductionP4 per unitFixed costs:SG&AP12,000 per yearProductionP15,000 per year1. Refer to Mark Pro. Assume Mark Pro produced and sold 5,000 units. At this level of activity, it produced a profit ofP18,000. What was Mark Pro sales price per unit?2. Refer to Mark Pro. In the upcoming year, Mark Pro estimates that it will produce and sell 4,000 units. The variable costsper unit and the total fixed costs are expected to be the same as in the current year. However, it anticipates a sales price of P16per unit. What is Mark Pro 's projected margin of safety for the coming year?

The margin of safety is calculated as difference between current sales and break even sales of the…

Answered: Mark Pro produces and sells a single…

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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