Problem 10. Bulac Corporation manufactures and sells two products – Bangus and Tupig. Current revenue,costs and sales data on the two products appear below.BangusP400TupigP600Selling price per unitVariable cost per unitNumber of units sold monthly240120200 units300 unitsFixed costs and expenses are P704,000 per month.Required:a. Average contribution margin ratio.b. Composite breakeven point in units and in pesos.c. Allocation of composite breakeven point in units.d. Assuming the company increases its fixed costs and expenses by P140,800, how many units ofBangus and Tupig should be sold at breakeven point?e. Refer to the original data, assuming the sales mix between Bangus and Tupig is 500 units forBangus and 300 units for Tupig, what is the new combined breakeven point in units and inpesos?f. Consider the original data, except that Pangasinan Company based its sales mix in units.Determine the following:i. Average UCM.ii. Composite BEP in units and in pesos.

Problem 10. Bulac Corporation manufactures and sells two products – Bangus and Tupig. Current revenue, costs and sales data on the two products appear below. Bangus P400 Tupig P600 Selling price per unit Variable cost per unit Number of units sold monthly 240 200 units 120 300 units Fixed costs and expenses are P704,000 per month. Required: a. Average contribution margin ratio. b. Composite breakeven point in units and in pesos. c. Allocation of composite breakeven point in units.

Problem 10. Bulac Corporation manufactures and sells two products – Bangus and Tupig. Current revenue, costs and sales data on the two products appear below. Bangus P400 Tupig P600 Selling price per unit Variable cost per unit Number of units sold monthly 240 200 units 120 300 units Fixed costs and expenses are P704,000 per month. Required: a. Average contribution margin ratio. b. Composite breakeven point in units and in pesos. c. Allocation of composite breakeven point in units.

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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Qq.10. Subject :- Account
Dominic's Deli recently calculated its annual break-even sales revenue to be $280,000. For each dollar of sales revenue, $0.40 goes to cover variable costs. a. Compute the contribution margin ratio. b. Compute the total fixed costs. c. Compute the sales revenue that would have to be generated to earn an operating income of $144,000. a. Contribution margin ratio b. Total fixed costs c. Sales revenue 60 %
Contribution per unit Example 3: ABC Ltd. manufacturing a single product, incurring variable costs of 300 per unit and fixed costs of 2,00,000 per month. If the product sells for *500 per unit, the breakeven point shall be calculated as follows;
Rr.4.
ABC Ltd produces a single product. The selling price is OMR 50 a unit and the variable costs is OMR 30 a unit. The annual fixed costs of the business are OMR 4000. calculate BEP in units Select one: O a. 210 Units O b. 200 Units O c. 220 Units O d. 250 Units
ni.6
1. Solve variable cost per unit. 2.Solve contribution margin per unit.
6.Dalian Company provides the following information: Price per unit $20.00 Variable cost per unit $8.00 Fixed costs per month: $15,000 What is the break-even point in terms of units sold? Select one: A.1,875 B.1,250 C.1,200 D.1,150
4.13 A company produces and sells two products at unit contribution margins of P4 for A and P10 for B. Fixed costs are P21,000. Instructions: If the planned sales mix is five units of A for each unit of B, what would be the breakeven point in units. (Indicate the product name and its corresponding number of units.)
The information below relates to the only product of Catherine Company: Exercise 4-13 Sales price per unit Variable cost per unit Fixed costs per year P48 36 P240,000 REQUIRED: i Compute the contribution margin ratio and the peso sales volume required to break-even. 2. Assuming that the company sells 75,000 units during the year, compute the margin of safety sales volume. Exercise 4-14 Cristina Corporation has fixed costs of P72,000 per month. It sells two products as follows: Sales Variable Contribution Price Cost Margin Product A P20 P8 P12 B 20 14 REQUIRED: 1. What monthly peso sales volume is required to break-even if three units of product A are sold with one unit of product B? 2. What monthly peso sales volume is required to break-even if one unit of product A is sold with three units of product B?
Zachary Company reported the following data regarding the product it sells: 11 Sales price Contribution margin ratio Fixed costs 48 25% $336,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $48,0000, what must the sales be in dollars? In units? c. If the sales price increases to $60 and variable costs do not change, what is the new break-even point in dollars? In units? a Break-even point in dollars Break-even point in units b. Sales in dollars Sales in units c Break-even point in dollars Break-even point in units