Morris Company is the exclusive distributor for an automotive product that sells for P40 per unit and has a CM ratio of 30%. The company's fixed expenses are P180,000 per year, The company plans to sell 16,000 units this year. Compute for the following: 1. Variable Expenses per unit. 2. Break-even point in unit sales. 3. Break-even point in Peso sales. 4. Unit Sales required to earn an annual profit of P60,000. 5. Peso Sales required to earn an annual profit of P60,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Morris Company is the exclusive distributor for an automotive product that sells for P40 per unit
and has a CM ratio of 30%. The company's fixed expenses are P180,000 per year. The company
plans to sell 16,000 units this year.
Compute for the following:
1. Variable Expenses per unit.
2. Break-even point in unit sales.
3. Break-even point in Peso sales.
4. Unit Sales required to earn an annual profit of P60,00O.
5. Peso Sales required to earn an annual profit of P60,000.
Transcribed Image Text:Morris Company is the exclusive distributor for an automotive product that sells for P40 per unit and has a CM ratio of 30%. The company's fixed expenses are P180,000 per year. The company plans to sell 16,000 units this year. Compute for the following: 1. Variable Expenses per unit. 2. Break-even point in unit sales. 3. Break-even point in Peso sales. 4. Unit Sales required to earn an annual profit of P60,00O. 5. Peso Sales required to earn an annual profit of P60,000.
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