Revenue, cost, and the profit functions. Sales volume when profit is P9,000. Profit by selling 600 units. Breakeven revenue and quantity. а. b. C. d. The amount by which the VC/u has to be decreased for the company to breakeven at 2,000 units, assuming that fixed cost and selling price remain constant. е. f. The new selling price in order to breakeven at 300 units, assuming that FC and VC remain constant. g. Number of units to be sold to cover FC.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

This topic is about CVP Analysis. Please check the photo for the problem. Thank you!

CVP ANALYSIS
CASE 1: DRAGON COMPANY
Dragon Company sells its product at P8 per unit. Variable cost per unit is P4 while the
total fixed cost is P9,000. Find the following:
a.
Revenue, cost, and the profit functions.
b.
Sales volume when profit is P9,000.
Profit by selling 600 units.
Breakeven revenue and quantity.
The amount by which the VC/u has to be decreased for the company to breakeven at 2,000 units,
assuming that fixed cost and selling price remain constant.
C.
d.
е.
f.
The new selling price in order to breakeven at 300 units, assuming that FC and VC remain constant.
g.
Number of units to be sold to cover FC.
Transcribed Image Text:CVP ANALYSIS CASE 1: DRAGON COMPANY Dragon Company sells its product at P8 per unit. Variable cost per unit is P4 while the total fixed cost is P9,000. Find the following: a. Revenue, cost, and the profit functions. b. Sales volume when profit is P9,000. Profit by selling 600 units. Breakeven revenue and quantity. The amount by which the VC/u has to be decreased for the company to breakeven at 2,000 units, assuming that fixed cost and selling price remain constant. C. d. е. f. The new selling price in order to breakeven at 300 units, assuming that FC and VC remain constant. g. Number of units to be sold to cover FC.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education