Potato Farm, Inc. produces and sells chips and crackers in the nearby town. Variable costing income statements for the current year are presented below: Chips P800,000 480.000 Sales Variable costs Contribution margin P320.000 Fixed costs Crackers P200,000 140,000 P 60.000 Total P1,000,000 620,000 P 380,000 228,000 P 152.000 _ Net income Instructions 1. Determine the sales mix, and contribution margin ratio for each product. 2. Calculate the weighted average contribution margin ratio. 3. Calculate the break-even point in pesos and in units for each product.

Potato Farm, Inc. produces and sells chips and crackers in the nearby town. Variable costing income statements for the current year are presented below: Chips P800,000 480.000 Sales Variable costs Contribution margin P320.000 Fixed costs Crackers P200,000 140,000 P 60.000 Total P1,000,000 620,000 P 380,000 228,000 P 152.000 _ Net income Instructions 1. Determine the sales mix, and contribution margin ratio for each product. 2. Calculate the weighted average contribution margin ratio. 3. Calculate the break-even point in pesos and in units for each product.

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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