The comparative income statement for the month of Uratex Philippines Corp makers of Monoblocks chairs shows the following; Sales ( P500 per unit x 200 total units sold ) P 100,000.00 Less: Cost of Goods Manufactured and Sold: Direct Materials Used P 25,000.00 Direct Labor 15,000.00 Factory Overhead 10,000.00 50,000.00 Gross Profit P 50,000.00 Less: Selling Expenses P 20,000.00 Administrative Expenses 14,000.00 34,000.00 Net Income P 16,000.00 ========== Required: Compute for the Operating Leverage Compute for the number of units sold to earn P25,000
The comparative income statement for the month of Uratex Philippines Corp makers of Monoblocks chairs shows the following;
Sales ( P500 per unit x 200 total units sold ) P 100,000.00
Less: Cost of Goods Manufactured and Sold:
Direct Materials Used P 25,000.00
Direct Labor 15,000.00
Factory Overhead 10,000.00 50,000.00
Gross Profit P 50,000.00
Less: Selling Expenses P 20,000.00
Administrative Expenses 14,000.00 34,000.00
Net Income P 16,000.00
==========
Required:
- Compute for the Operating Leverage
- Compute for the number of units sold to earn P25,000
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