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Problem 6 The MIX Company sells two products, Avon and Bona. MIX sells these products at the rate of 2 units of Avon and 3 units of Bona. The contribution margin per unit of Avon is P4 and Bona is P2. MIX has a total fixed cost of P420, 000. The selling price of Avon is P10 and Bona is P8. REQUIRED: Compute for the following: 1. Composite contribution margin per unit 2. Composite contribution margin ratio 3. Composite break-even point in units 4. Composite break-even point in peso sales 5. Break-even point for each product (in units and

Problem 6 The MIX Company sells two products, Avon and Bona. MIX sells these products at the rate of 2 units of Avon and 3 units of Bona. The contribution margin per unit of Avon is P4 and Bona is P2. MIX has a total fixed cost of P420, 000. The selling price of Avon is P10 and Bona is P8. REQUIRED: Compute for the following: 1. Composite contribution margin per unit 2. Composite contribution margin ratio 3. Composite break-even point in units 4. Composite break-even point in peso sales 5. Break-even point for each product (in units and

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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answer the following questions, which is the number 1 to 5. Show your complete solution/computation

Problem 6 The MIX Company sells two products, Avon and Bona. MIX sells these products at the rate of 2 units of Avon and 3 units of Bona. The contribution margin per unit of Avon is P4 and Bona is P2. MIX has a total fixed cost of P420, 000. The selling price of Avon is P10 and Bona is P8. REQUIRED: Compute for the following: 1. Composite contribution margin per unit 2. Composite contribution margin ratio 3. Composite break-even point in units 4. Composite break-even point in peso sales 5. Break-even point for each product (in units and peso sales)
Transcribed Image Text:Problem 6 The MIX Company sells two products, Avon and Bona. MIX sells these products at the rate of 2 units of Avon and 3 units of Bona. The contribution margin per unit of Avon is P4 and Bona is P2. MIX has a total fixed cost of P420, 000. The selling price of Avon is P10 and Bona is P8. REQUIRED: Compute for the following: 1. Composite contribution margin per unit 2. Composite contribution margin ratio 3. Composite break-even point in units 4. Composite break-even point in peso sales 5. Break-even point for each product (in units and peso sales)
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