The Abigail Company produces and sell two products, X and Y. Cost and revenue data on the products follow: Product X Product Y Selling price per unit Variable cost per unit Contribution margin per unit P20 P24 12 P8 P18 In the most recent month, the company sold 400 units of Product X and 800 units of Product Y. Fixed expenses are P10,000 per month. REQUIRED: 1. Prepare a comparative income statement for both products on the most recent monthly projections. 2. Compute the company's overall monthly break-even point in peso sales.
The Abigail Company produces and sell two products, X and Y. Cost and revenue data on the products follow: Product X Product Y Selling price per unit Variable cost per unit Contribution margin per unit P20 P24 12 P8 P18 In the most recent month, the company sold 400 units of Product X and 800 units of Product Y. Fixed expenses are P10,000 per month. REQUIRED: 1. Prepare a comparative income statement for both products on the most recent monthly projections. 2. Compute the company's overall monthly break-even point in peso sales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Exercise 4-18
The Abigail Company produces and sell two products, X and Y. Cost
and revenue data on the products follow:
Product X
Product Y
Selling price per unit
Variable cost per unit
Contribution margin per unit
P20
P24
12
P8
P18
In the most recent month, the company sold 400 units of Product X and
800 units of Product Y. Fixed expenses are P10,000 per month.
REQUIRED:
1. Prepare a comparative income statement for both products on the most recent
monthly projections.
2. Compute the company's overall monthly break-even point in peso sales
3. If the company continues to sell 1, 200 units in total each month, but the sales
mix shifts so that an equal number of units of each product is being sold.
would you expect monthly net income to rise or fall? Explain. Prepare
another comparative income statement to answer this.
4. Refer to no. 3 above. If the sales mix shifts as explained, would you expect
the company's break-even point to rise or fall? Explain.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcf1acaf7-7a6b-47a0-aa27-2a02525bc2aa%2F27e8bf8c-7924-460c-acdc-5cc346f4b03b%2Fnrye1e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 4-18
The Abigail Company produces and sell two products, X and Y. Cost
and revenue data on the products follow:
Product X
Product Y
Selling price per unit
Variable cost per unit
Contribution margin per unit
P20
P24
12
P8
P18
In the most recent month, the company sold 400 units of Product X and
800 units of Product Y. Fixed expenses are P10,000 per month.
REQUIRED:
1. Prepare a comparative income statement for both products on the most recent
monthly projections.
2. Compute the company's overall monthly break-even point in peso sales
3. If the company continues to sell 1, 200 units in total each month, but the sales
mix shifts so that an equal number of units of each product is being sold.
would you expect monthly net income to rise or fall? Explain. Prepare
another comparative income statement to answer this.
4. Refer to no. 3 above. If the sales mix shifts as explained, would you expect
the company's break-even point to rise or fall? Explain.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education