Shalom Company manufactures socks that sell for P60 each. For the coming year, the management estimates fixed costs to be P200,000 and variable costs to be P45 per unit. 1 What is Shalom Company's contribution margin ratio? 2 If the actual sales during the period was P750,000, did the company earn profit or incur loss? Use the underlined words in capital letters as your choice. 3 If in the following period, Shalom Company wants to earn profit of P180,000, how many units should Shalom Company sell?
Shalom Company manufactures socks that sell for P60 each. For the coming year, the management estimates fixed costs to be P200,000 and variable costs to be P45 per unit. 1 What is Shalom Company's contribution margin ratio? 2 If the actual sales during the period was P750,000, did the company earn profit or incur loss? Use the underlined words in capital letters as your choice. 3 If in the following period, Shalom Company wants to earn profit of P180,000, how many units should Shalom Company sell?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Shalom Company manufactures socks that sell for P60 each. For the coming year, the
management estimates fixed costs to be P200,000 and variable costs to be P45 per unit.
1 What is Shalom Company's contribution margin ratio?
2 If the actual sales during the period was P750,000, did the company earn profit or incur loss?
Use the underlined words in capital letters as your choice.
3 If in the following period, Shalom Company wants to earn profit of P180,000, how many units
should Shalom Company sell?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5c78dac-81bd-4325-85cb-6acce8c87b53%2F0237474c-e72d-465b-ae86-667405f873ff%2F2z647jq_processed.png&w=3840&q=75)
Transcribed Image Text:Shalom Company manufactures socks that sell for P60 each. For the coming year, the
management estimates fixed costs to be P200,000 and variable costs to be P45 per unit.
1 What is Shalom Company's contribution margin ratio?
2 If the actual sales during the period was P750,000, did the company earn profit or incur loss?
Use the underlined words in capital letters as your choice.
3 If in the following period, Shalom Company wants to earn profit of P180,000, how many units
should Shalom Company sell?
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