Sales Variable Expenses P 450,000 P 360,000 P 50,000 P 20,000 Lablab expects to have a total of 57,600 fixed expenses next year. What is the company's break-even peso sales? 2. Hi Products, Inc. sells two products, F and C. The sales mix is expected to be P3.00 of sales of product C for every P1.00 of sales of product F. Product F has a contribution margin of 40% whereas product C has a contribution margin ratio of 50%. Annual fixed costs are expected to be P125,000. What would be the overall break-even point for the company in peso sales?
Sales Variable Expenses P 450,000 P 360,000 P 50,000 P 20,000 Lablab expects to have a total of 57,600 fixed expenses next year. What is the company's break-even peso sales? 2. Hi Products, Inc. sells two products, F and C. The sales mix is expected to be P3.00 of sales of product C for every P1.00 of sales of product F. Product F has a contribution margin of 40% whereas product C has a contribution margin ratio of 50%. Annual fixed costs are expected to be P125,000. What would be the overall break-even point for the company in peso sales?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:1. Lablab Company manufactures and sells two types of beach towels, standard
and premier. Lab Lab expects the following operating results next year for
each type of towel.
Sales
Variable Expenses
Standard
P 450,000
P 360,000
Premier
P 50,000
P 20,000
Lablab expects to have a total of 57,600 fixed expenses next year. What is the
company's break-even peso sales?
2. Hi Products, Inc. sells two products, F and C. The sales mix is expected to
be P3.00 of sales of product C for every P1.00 of sales of product F.
Product F has a contribution margin of 40% whereas product C has a
contribution margin ratio of 50%. Annual fixed costs are expected to be
P125,000. What would be the overall break-even point for the company in
peso sales?
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VIEWAnswer to part 1 (Step 1) Calculation of Sales Mix
VIEWAnswer to part 1 (Step 2) Calculation of weighted Contribution margin
VIEWPart 1 (step 3 ):Calculation of Break even sales of the company and Product wise Break even sales)
VIEWPart 2 (Step 1) Calculation of weighted Contribution margin
VIEWPart 2 (Step 2) Calculation of overall company breal even sales (peso)
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