The following data were obtained regarding the operations of Kirsten Company: Sales in units P 80,000 Variable Cost per Unit 6 Fixed Expenses 125,000 Selling Price per Unit 8 Compute for the following: 1. Contribution Margin. 2. Contribution Margin per Unit. 3. Contribution Margin Ratio (Use 2 decimal places without % sign). 4. Net Operational Profit. 5. Break-even Point in Pesos. 6. Break-even Point in Units.
The following data were obtained regarding the operations of Kirsten Company: Sales in units P 80,000 Variable Cost per Unit 6 Fixed Expenses 125,000 Selling Price per Unit 8 Compute for the following: 1. Contribution Margin. 2. Contribution Margin per Unit. 3. Contribution Margin Ratio (Use 2 decimal places without % sign). 4. Net Operational Profit. 5. Break-even Point in Pesos. 6. Break-even Point in Units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kindly answer question number 4-12
Transcribed Image Text:The following data were obtained regarding the operations of Kirsten Company:
Sales in units
P 80,000
Variable Cost per Unit
6
Fixed Expenses
125,000
Selling Price per Unit
8
Compute for the following:
1. Contribution Margin.
2. Contribution Margin per Unit.
3. Contribution Margin Ratio (Use 2 decimal places without % sign).
4. Net Operational Profit.
5. Break-even Point in Pesos.
6. Break-even Point in Units.
Transcribed Image Text:6. Break-even Point in Units.
7. Unit sales needed to attain a Target Profit of P50,000.
8. Peso Sales needed to attain a Target Profit of P50,000.
9. Margin of Safety in Pesos.
10. Margin of Safety in Units.
11. Margin of Safety Percentage (Use 2 decimal places without % sign).
12. Degree of Operating Leverage (Use 2 decimal places).
Answer in Whole Number except when there is a separate instruction.
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