PE 4. Maharlika Company manufacture two products, Alpha and Beta. Fixed costs equal P146,000. Product Alpha sells for P12 and has variable cost of P6. Product Beta sells for P8 and has variable costs of P5. 1. If Maharlika sells 20,000 units of Alpha and 40,000 units of Beta, what is the net income? 2. Assuming the sales given in Question number 1, how many units of Alpha and Beta to breakeven? 3. Assume Maharlika has the opportunity to rearrange its plant to produce only Product Beta. If this is done, fixed cost will decrease by P35,000, and 70,000 units of Product Beta can be produced and sold. Compute the effect of this change on profit.

PE 4. Maharlika Company manufacture two products, Alpha and Beta. Fixed costs equal P146,000. Product Alpha sells for P12 and has variable cost of P6. Product Beta sells for P8 and has variable costs of P5. 1. If Maharlika sells 20,000 units of Alpha and 40,000 units of Beta, what is the net income? 2. Assuming the sales given in Question number 1, how many units of Alpha and Beta to breakeven? 3. Assume Maharlika has the opportunity to rearrange its plant to produce only Product Beta. If this is done, fixed cost will decrease by P35,000, and 70,000 units of Product Beta can be produced and sold. Compute the effect of this change on profit.

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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