1. The Red Lions Brotherhood is planning its annual Riverboat Extravaganza. The Extravaganza committee has assembled the following expected costs for the event: Dinner per person P 70 Programs and souvenir per person 30 Orchestra 15,000 Tickets and advertising 7,000 Riverboat rental 48,000 Floor show and strolling entertainment 10,000 The committee members would like to charge P300 per person for the evening's activities. Assume that only 250 persons are expected to attend the extravaganza, what ticket price must be charged to breakeven?

? P420

? P320

? P350

? P390

? None of the above

2. A Company manufactures a single product. Planned and actual production for first year is 100,000 units. Planned and actual cost for first year are as follows:

Manufacturing Non manufacturing Variable P 600,000 500,000 Fixed 400,000 300,000 The company sold 85,000 units of product at a selling price of P 30 per unit. Using variable costing, what is the operating profit