Problem III: The following information pertains to X Company's two (2) products: Break-even point in units Selling price per unit Variable cost per unit Sales mix ratio Product A 360 P4,500.00 P2,250.00 60% 1. Determine the Weighted-average contribution margin. 2. Determine the total fixed cost. 3. Product B 240 P 14,250.00 P5,000.00 40% What is the sale mix in units if the X Company desires to earn a profit after tax of P1,060,500.00 and the tax rate is 30%.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Problem III:
The following information pertains to X Company's two (2) products:
Break-even point in units
Selling price per unit
Variable cost per unit
Sales mix ratio
Product A
360
P4,500.00
P2,250.00
60%
1. Determine the Weighted-average contribution margin.
2. Determine the total fixed cost.
3.
Product B
240
P 14,250.00
P5,000.00
40%
What is the sale mix in units if the X Company desires to earn a profit after tax of P1,060,500.00
and the tax rate is 30%.
Transcribed Image Text:Problem III: The following information pertains to X Company's two (2) products: Break-even point in units Selling price per unit Variable cost per unit Sales mix ratio Product A 360 P4,500.00 P2,250.00 60% 1. Determine the Weighted-average contribution margin. 2. Determine the total fixed cost. 3. Product B 240 P 14,250.00 P5,000.00 40% What is the sale mix in units if the X Company desires to earn a profit after tax of P1,060,500.00 and the tax rate is 30%.
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