1.Selling price is P40, contribution margin, P24, and fixed costs, P400,000. BEP in units is

Answer

2.Contribution margin is 30% of sales; profit, P80,000; sales, P600,000. Fixed costs are

3.Reindeer Company makes hoses for its sprayers. Unit costs applicable to these hoses are:

Direct materials 35

Direct labor 20

Variable manufacturing overhead 9

Fixed manufacturing overhead 21

General and administrative cost 16

Five thousand (5,000) units are required for the year. The space that is used for the hoses production can be used as warehouse and will save rental cost of P48,000 per year. The hoses can be bought for P70 a piece. If Reindeer Company buys the hoses, it will save _________ per horses

4.Cherry Company has the following data for 2015:

SalesP400,000

Contribution MarginP160,000

Operating IncomeP80,000

Average Operating AssetsP320,000

Target ROI20%

The Return on Investment is