Chapter 4 Cost Volume Profit Analysis105PROBLEMSProblem 1Candace Company's projected profit for the coming year is as follows:PER UNITP 60.0036.00P 24.00TOTALP 600,000360,000240,000192,000P 48,000SalesVariable costContribution marginFixed costOperating incomeRequired1.Compute the variable cost ratio2.Compute the contribution ratio3.Compute the break- even point in units4.Compute the break - even sales in pesosProblem 2Monet Company plans to sell 10,000 motorcycle helmets at P1,000 each in thecoming year. Variable cost is P 700 which includes direct materials, direct labor,variable factory overhead, variable selling, and variable administrative. Totalfixed cost equals P148,500 which includes fixed factory overhead, and fixedadministrative expenses.Required1.Compute the break-even point in number of helmets2.Compute for the break-even sales3.Check your answer by preparing a contribution margin statement based on thebreak-even salesProblem 3Reno sell a product for P1,050 with variable cost of P630. Total fixed costamounted to P630,000.1.Compute for contribution margin per unit2.Compute for contribution margin ratio3.Compute for the break-even point in units and in pesos4.If Reno wants to earn P94,500, how many units must the company sell?Scanned with CamScanner

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Description: Chapter 4 Cost Volume Profit Analysis105PROBLEMSProblem 1Candace Company's projected profit for the coming year is as follows:PER UNITP 60.0036.00P 24.00TOTALP 600,000360,000240,000192,000P 48,000SalesVariable costContribution marginFixed costOperat

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Problem Candace Company's projected profit for the coming year is as follows: TOTAL PER UNIT P 60.00 P 600,000 360,000 240,000 192,000 P 48,000 Sales 36.00 Variable cost Contribution margin Fixed cost P 24.00 Operating income Required 1.Compute the variable cost ratio 2.Compute the contribution ratio 3.Compute the break- even point in units

Problem Candace Company's projected profit for the coming year is as follows: TOTAL PER UNIT P 60.00 P 600,000 360,000 240,000 192,000 P 48,000 Sales 36.00 Variable cost Contribution margin Fixed cost P 24.00 Operating income Required 1.Compute the variable cost ratio 2.Compute the contribution ratio 3.Compute the break- even point in units

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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