Problem II: The following is the 2nd Quarter Income Statement of Y Corporation, which produces one single product: Sales Cost of Sales Gross Profit P 100,000.00 45,000.00 P 55,000.00 25,000.00 P 30,000.00 Operating Expenses Net Income The cost of sales is a mixed cost. The fixed cost is P 15,000.00. The selling price is P125.00/unit. The contribution margin ratio is 55% of the total sales. The operating expenses are composed of variable selling expenses and fixed administrative expenses amounting to P10,000.00 and P15,000.00, respectively. 1. Determine the total fixed cost of Y Corporation. 2. Determine the Break-even point. 3. Determine the break-even sales in pesos. 4. Determine the number of units that must be sold to earn a profit of P5,000.00 after tax. The tax rate is 30%.
Problem II: The following is the 2nd Quarter Income Statement of Y Corporation, which produces one single product: Sales Cost of Sales Gross Profit P 100,000.00 45,000.00 P 55,000.00 25,000.00 P 30,000.00 Operating Expenses Net Income The cost of sales is a mixed cost. The fixed cost is P 15,000.00. The selling price is P125.00/unit. The contribution margin ratio is 55% of the total sales. The operating expenses are composed of variable selling expenses and fixed administrative expenses amounting to P10,000.00 and P15,000.00, respectively. 1. Determine the total fixed cost of Y Corporation. 2. Determine the Break-even point. 3. Determine the break-even sales in pesos. 4. Determine the number of units that must be sold to earn a profit of P5,000.00 after tax. The tax rate is 30%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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Strategic Cost Management
Give what is required of the problem.
What is the correct answer to numbers 1, 2, 3 and 4?
Transcribed Image Text:Problem II:
The following is the 2nd Quarter Income Statement of Y Corporation, which produces one single product:
Sales
Cost of Sales
Gross Profit
P 100,000.00
45,000.00
P 55,000.00
25,000.00
P 30,000.00
Operating Expenses
Net Income
The cost of sales is a mixed cost. The fixed cost is P 15,000.00. The selling price is P125.00/unit. The
contribution margin ratio is 55% of the total sales. The operating expenses are composed of variable
selling expenses and fixed administrative expenses amounting to P10,000.00 and P15,000.00,
respectively.
1. Determine the total fixed cost of Y Corporation.
2. Determine the Break-even point.
3. Determine the break-even sales in pesos.
4. Determine the number of units that must be sold to earn a profit of P5,000.00 after tax. The tax
rate is 30%.
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