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PROBLEM 4. Cindy, Inc., sells a single product. The company's most recent income statement is given below. Sales (10,000 units) Less variable expenses Contribution margin Less fixed expenses Operating income P800,000 ( 440,000) 360,000 (180,000) P180,000 4. If the firm were able to increase both its selling price and variable cost by 15 percent, would the breakeven point in units or in pesos change? 5. Prepare comparative income statements at sales level of 5,000 and 6,000 units.

PROBLEM 4. Cindy, Inc., sells a single product. The company's most recent income statement is given below. Sales (10,000 units) Less variable expenses Contribution margin Less fixed expenses Operating income P800,000 ( 440,000) 360,000 (180,000) P180,000 4. If the firm were able to increase both its selling price and variable cost by 15 percent, would the breakeven point in units or in pesos change? 5. Prepare comparative income statements at sales level of 5,000 and 6,000 units.

FINANCIAL ACCOUNTING
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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PROBLEM 4. Cindy, Inc., sells a single product. The company's most recent income statement is given below. P800,000 ( 440,000) 360,000 (180,000) P180,000 Sales (10,000 units) Less variable expenses Contribution margin Less fixed expenses Operating income e 4. If the firm were able to increase both its selling price and variable cost by 15 percent, would the breakeven point in units or in pesos change? 5. Prepare comparative income statements at sales level of 5,000 and 6,000 units.
Transcribed Image Text:PROBLEM 4. Cindy, Inc., sells a single product. The company's most recent income statement is given below. P800,000 ( 440,000) 360,000 (180,000) P180,000 Sales (10,000 units) Less variable expenses Contribution margin Less fixed expenses Operating income e 4. If the firm were able to increase both its selling price and variable cost by 15 percent, would the breakeven point in units or in pesos change? 5. Prepare comparative income statements at sales level of 5,000 and 6,000 units.
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