1.1

A. Narra Company sells a product for P1,400 per unit. The variable cost is P800 per unit, and fixed costs are P4,000,000.

a. How much is the break-even point in sales units?

b. How much is the break-even point in sales amount if the company desires a target profit of P500,000?

B. The following information pertains to Bright Co.'s cost-volume-profit relationships:

Break-even point in units sold.............1,000

Variable costs per unit..........................P500

Total fixed costs P150,000

a. How much will be contributed to profit when the 1,005th unit is sold?

b. How much is the contribution margin at the breakeven volume? C. Hatchy's operating percentages were as follows:

Sales............................................................................................100%

Cost of sales:

Variable.....................50%

Fixed........... 10 60

Gross profit.............................40%

Other operating expenses:

Variable ....................................... 20%

Fixed ........................... 15 35%

Operating income ................................... 5%

Hatchy's sales totaled P3,000,000.

1. At what sales level would Hatchy breakeven?

2. What is the breakeven point if Hatchy wants to have a net income of P1,000,000?