Please do not give solution in image format thanku Topic:Problem:Question 1:Cost-Volume-Profit AnalysisPMZ Corporation manufactured and sold 1200 pcs of Product A for the year 2020.The variable and fixed costs for 2020 are indicated in the table. PMZ pays its IncomeTax based on the following scheme: Corporations pay a fixed 5,000 for the firstPHP50,000 income and 12% in excess thereof. The NIAT of PMZ for 2020 is PHP97,096.00.Direct materials usedDirect laborSupervisory salariesIndirect materials and suppliesPlant utilities (other than power to run plant equipment)Power to run plant equipmentDepreciation on plant and equipment (SL basis only)Property taxes on building25,200.0046,500.0011,100.008,000.009,600.007,100.004,800.006,500.00Assuming that the performance of PMZ corporation is the same for 2021, calculatethe Margin of Safety in Percentage. Express up to 2 decimal places and indicate %sign in your answer. Two clues, first, if the BEP has decimal places, round it up.Second, margin of safety is the ratio of the difference between Units Sold and BEP toBEP. It measures how far the company is from BEP.QuestionsCalculate the Margin of Safety in Percentage.

Contribution means the difference between the selling price and variable cost.Fixed cost when…

PMZ Corporation manufactured and sold 1200 pcs of Product A for the year 2020. The variable and fixed costs for 2020 are indicated in the table. PMZ pays its Income Tax based on the following scheme: Corporations pay a fixed 5,000 for the first PHP50,000 income and 12% in excess thereof. The NIAT of PMZ for 2020 is PHP 97,096.00. Direct materials used 25,200.00 *6500.00

PMZ Corporation manufactured and sold 1200 pcs of Product A for the year 2020. The variable and fixed costs for 2020 are indicated in the table. PMZ pays its Income Tax based on the following scheme: Corporations pay a fixed 5,000 for the first PHP50,000 income and 12% in excess thereof. The NIAT of PMZ for 2020 is PHP 97,096.00. Direct materials used 25,200.00 *6500.00

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.16E

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