Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5. Phones, Inc. has three (3) cellular phone products: Cell 1150, Cell 2210 and Cell 3250. The revenues and expenses attributed to each individual product

image text in transcribed

5. Phones, Inc. has three (3) cellular phone products: Cell 1150, Cell 2210 and Cell 3250. The revenues and expenses attributed to each individual product type of the company during the previous fiscal year are summarized as follows: Cell 1150 Cell 2210 Cell 3250 Total Total Sales in Units 15,000 5,000 12,000 32,000 Total Peso Sales (in Php) 300,000,000 150,000,000 72,000,000 522,000,000 Total Variable Cost (in Php) 180,000,000 90,000,000 42,000,000 312,000,000 Total Fixed Cost (in Php) 70,000,000 50,000,000 8,500,000 128,500,000 Compute the breakeven point in units for each product type assuming that Phones, Inc.'s sales mix will be maintained. Phones, Inc. plans to launch a promotional offer to the market, giving 5% off on the selling price of Cell 1150 and 10% discount on the selling price of both Cell 2210 and Cell 3250. Given the promotional plan of the company, how many units of each product type should be sold in order to realize a profit of Php 25,000,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing

Authors: Michael C. Knapp

8th edition

978-0538466790, 538466790, 978-1285066608

More Books

Students also viewed these Accounting questions