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(10.) Given the following information for Leonard Co. for April: Sales Fixed Manufacturing Costs P 180,000 22,000 Fixed Administrative Costs 14,000 Total Fixed Costs
(10.) Given the following information for Leonard Co. for April: Sales Fixed Manufacturing Costs P 180,000 22,000 Fixed Administrative Costs 14,000 Total Fixed Costs 36,000 Total Variable Costs 120,000 Unit Price 9.00 Unit Variable Manufacturing Costs 5.00 Unit Variable Marketing Costs 1.00 Compute the following: a. Operating profit when sales are P180,000 b. Break-even quantity. c. Quantity that would produce an operating profit of P30,000. d. Quantity that would produce an operating profit of 20% of peso sales. e. Break-even sales quantity if unit variable costs are reduced by 10% per product unit, assuming no changes in total fixed costs. f. Sales (in pesos) required to generate an operating profit of P20,000. g. Percentage reduction in the current selling price if present profit and sales volume are to be maintained and unit variable cost is to decrease by 20% and total fixed cost is to decrease by 10%. h. Reduction in unit variable cost if the present profit and sales volume are to be retained but price is to decrease by 10%. i. Number of units sold in April.
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