a. Hess Inc. sells a single product with a contribution margin of P12 per unit and fixed
Question:
a. Hess Inc. sells a single product with a contribution margin of P12 per unit and fixed
costs of P74,400 and sales for the current year of P100,000. How much is the Hess
breakeven point?
b. Hartley Inc. has one product with a selling price per unit of P200, the unit variable cost is
P75, and the total monthly fixed costs are P300,000. How much is the Hartleys
contribution margin ratio?
c. Forms Inc. wants to sell a sufficient quantity of products to earn a profit of P40,000. If the
unit sales price is P10, unit variable cost is P8, and total fixed costs are P80,000, how
many units must be sold to earn the target profit?
d. How much peso sales are required to earn a target income of P80,000 if total fixed costs
are P100,000 and the contribution margin ratio is 40%?
Engineering Economic Analysis
ISBN: 9780195168075
9th Edition
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle