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10.The Ebony & Ivory Company manufactures an engine for carpet cleaners called the Snooper. Budgeted cost and revenue data for the Snooper are given below,
10.The Ebony & Ivory Company manufactures an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below, based on sales of 40,000 units. Sales P1,800,000 Less: Cost of goods sold 1,220,000 Gross margin P 580,000 Less: Operating expenses 200,000 Net income P 380.000 Cost of goods sold consists of P900,000 of variable costs and P320.,000 of fixed costs. Operating expenses consist of P80,000 of variable costs and P120,000 of fixed costs., Calculate the break-even point in units and sales Peso. 11. Referring to no. 10, Calculate the safety margin. 12. Referring to no. 10, Ebony & Ivorys received an order for 8,000 units at a price of P25.00. There will be no increase in fixed costs, but variable costs will be reduced by P0.50 per unit because of cheaper packaging. Determine the projected increase or decrease in profit from the order. T
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