1. Assume that a poster company has fixed operating costs of 5,000. Its selling price is P25 per poster, and its variable operating cost is P10 per poster. What is the breakeven point?

a. 500 units b. 200 units c. 333 units d. 463 units

2. The company sold 200,000 units of a product. Selling price per unit is P6.25. Variable costs are 60% of the selling price and fixed costs are P300, 000. What is the degree of operating leverage?

a. 1.5x b. 2.5x c. 1.67x d. 3.75x

3. What will your 12,000php be worth at the end of one year when the nominal annual interest rate is 12% when interest is compounded daily?

a. 12,000 b. 13,530 c. 13,440 d. 12,440

4. The company budgeted sales in units for the last quarter of the year as follows: October - 12,000; November - 14,000; December - 16,000. The finished goods inventory on hand October 1 is 4,000 units. It desires an ending inventory on December 31 of 3,000 units. How many units should it produce for the last quarter?

a. 41,000 b. 43,000 c. 45,000 d. 49,000

5. A company is planning to buy a new truck that will cost P700,000 and will be depreciated on a straight-line basis over 5-year period. The new truck will replace another that has a book value of P450,000 and five years useful life remaining. The old truck can be sold for P400,000. The current tax rate is 35%. How much is the net initial investment for the new truck?

a. P300,000 b. P250,000 c. P282,500 d. P317,500