Problem No. 4 - Cost Volume Profit Analysis CBA Company provided you with the following information: Product C F Units sold 60,000 20,000 20,000 25,000 Unit selling price P40 P35 P35 P35 Material cost per unit P15 P18 P20 P16 Labor cost per unit P5 P3 P3 P2 Variable cost per unit P2 P1 P1 P1 Total fixed costs P1,019,200 Desired profit P784,000 Requirement: 1. Determine the volume of each product to show a net profit of P784,000. 2. Prepare a statement of comprehensive income showing the sales, contribution

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Problem No. 4 - Cost Volume Profit Analysis
CBA Company provided you with the following information:
Product
C
E
F
Units sold
60,000
20,000
20,000
25,000
Unit selling price
P40
P35
P35
P35
Material cost per unit
P15
P18
P20
P16
Labor cost per unit
P5
P3
P3
P2
Variable cost per unit
P2
P1
P1
P1
Total fixed costs
P1,019,200
Desired profit
P784,000
Requirement:
1. Determine the volume of each product to show a net profit of P784,000.
2. Prepare a statement of comprehensive income showing the sales, contribution
margin of each product and total, and the net profit of P784,000.
Transcribed Image Text:Problem No. 4 - Cost Volume Profit Analysis CBA Company provided you with the following information: Product C E F Units sold 60,000 20,000 20,000 25,000 Unit selling price P40 P35 P35 P35 Material cost per unit P15 P18 P20 P16 Labor cost per unit P5 P3 P3 P2 Variable cost per unit P2 P1 P1 P1 Total fixed costs P1,019,200 Desired profit P784,000 Requirement: 1. Determine the volume of each product to show a net profit of P784,000. 2. Prepare a statement of comprehensive income showing the sales, contribution margin of each product and total, and the net profit of P784,000.
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