PROBLEM 8. The Color Company manufactures and sells two products. The selling prices and variable costs of the products are as follows: Selling prices Variable costs Blujets P20 Blupens P40 24 8 The sales for 2021 were in the ratio of 3 Blujets to 1 Blupen. Sales volume for 2021 was P1 million. Fixed costs for 2020 amounted to P390,000. Requirements: 1. Compute the number of units sold in 2021 for each product. 2. Compute the breakeven sales in pesos and in units. 3. Compute the composite breakeven for the company.

PROBLEM 8. The Color Company manufactures and sells two products. The selling prices and variable costs of the products are as follows: Selling prices Variable costs Blujets P20 Blupens P40 24 8 The sales for 2021 were in the ratio of 3 Blujets to 1 Blupen. Sales volume for 2021 was P1 million. Fixed costs for 2020 amounted to P390,000. Requirements: 1. Compute the number of units sold in 2021 for each product. 2. Compute the breakeven sales in pesos and in units. 3. Compute the composite breakeven for the company.

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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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

PROBLEM 8. The Color Company manufactures and sells two
products. The selling prices and variable costs of the products
are as follows:
Blujets
Blupens
Selling prices
Variable costs
P20
P40
8
24
The sales for 2021 were in the ratio of 3 Blujets to 1 Blupen.
Sales volume for 2021 was P1 million. Fixed costs for 2020
amounted to P390,000.
Requirements:
1. Compute the number of units sold in 2021 for each
product.
2. Compute the breakeven sales in pesos and in units.
3. Compute the composite breakeven for the company.

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