PROBLEM 4. Cindy, Inc., sells a single product. The company'smost recent income statement is given below.P800,000( 440,000)360,000(180,000)P180,000Sales (10,000 units)Less variable expensesContribution marginLess fixed expensesOperating incomee4.If the firm were able to increase both its selling price andvariable cost by 15 percent, would the breakeven point inunits or in pesos change?5. Prepare comparative income statements at sales level of5,000 and 6,000 units.

Break-even point ( in units ) = Fixed expenses / Contribution margin per unit Break-even point ( in…

Answered: PROBLEM 4. Cindy, Inc., sells a single…

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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xZ Companys single produchas a selling pnce of 525 per unit. Last year the company reported profit of 5200,000 and variable expenses totaling 5960,000. The product has a 40% contribution margin ratio. Because of competition. XYZ Company will be forced in the current year to reduce its selling price by $2 per unit How many units must be sold in the current year to earn the same profit as was earned last year? Select one: Oa.64.000 Oc44000 0000 00 O e.116 000

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