Question

Quiz # 1 CVP Problem 1:10 points show process any is planning to market 30.000 units of product X. The fixed costs are P 600,000.00 on Its planned sales and variable costs are 60% of the selling Price Required: compute the selling price per unit if the Company expects to earns a profit of P 120,000.00 on its planned sales. Problem 2:5 points each Company's breakeven sales are P 528,000.00. The variable costs ratio to sales is 60% while the net income percentage to sales is 8%. Based on the above data, compute the following: f. Margin of safety ratio g. Actual sales h. Margin of safety i. Fixed costs j. Net income Problem 3: 5 points each The TS Company sells products A for P 60.00 each. Variable costs are P 36.00 per unit. Fixed costs are P 375,000.00. How much sales in (units and pesos) must be reached to realize a: d. Net income of P 102,000.00 before taxes e. Net income of P 97,500.00 after ignoring taxes. Tax rate is 35% f. Net income of 15% of sales. Ignore income taxes 20

Answer 1

vity No. Date. Problemi Variable Cost to sale = So contribution to sale = 60% 40% Contribution = Fixed Cost & Perotit Fixed cost z P 6co, ooo,00 Desered Patofit = Desired Profit = P 190,000.co Contribution = 6o,oo.oo + 190,000,oo = P720 000,00 = P720,000 Sale - Contribution 40% 720,000.100 40 Total sale = P180,000, 0.00 = P 18,000,00 Selling Price per unit = 1800, 00o, ed 30,000 = P 180.00 = P 180 Teacher's Signature