The CVP income statements of Peace and Shalom Company are available below. The two companies belong in the same manufacturing industry and coincidentally, both had the same operating income in 2022: Sales Variable costs Peace Shalom 300,000 300,000 150,000 120,000 150,000 180,000 90,000 120,000 60,000 Contribution margin Fixed costs Operating income 60,000 Amounts must be in whole numbers. Example: 88,000 or (88,000) Format of percentages: 88% Format of units: 88,000 UNITS (in whole numbers, one space after the number of units) Words must be in capital letters. Which company has to sell more units to earn profit? Use the company name only (underlined above) If the selling price of the two companies is P100 per unit, how many units shall your answer above sell to break- even?
The CVP income statements of Peace and Shalom Company are available below. The two companies belong in the same manufacturing industry and coincidentally, both had the same operating income in 2022: Sales Variable costs Peace Shalom 300,000 300,000 150,000 120,000 150,000 180,000 90,000 120,000 60,000 Contribution margin Fixed costs Operating income 60,000 Amounts must be in whole numbers. Example: 88,000 or (88,000) Format of percentages: 88% Format of units: 88,000 UNITS (in whole numbers, one space after the number of units) Words must be in capital letters. Which company has to sell more units to earn profit? Use the company name only (underlined above) If the selling price of the two companies is P100 per unit, how many units shall your answer above sell to break- even?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Expert Solution
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 4 steps with 1 images
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education