63.Wagner sells product A at a price of P21 per unit. Wagner's cost per

unit based on the full capacity of 200,000 units is as follows:

Direct materials P 4

Direct labor 5

Overhead (2/3 of which is fixed) 6

TOTAL P15

A special order offering to buy 20,000 units was received from a

foreign distributor. The only selling costs that would be incurred on

this order would be P3 per unit for shipping. Wagner has sufficient

existing capacity to manufacture the additional units

To achieve an increase in operating income of P40,000. Wagner should

charge a selling price of

A. P14 C. P16

B. P15 D. P18

64.Yardley Co. has considerable excess manufacturing capacity. A special

job order's cost sheet includes the following applied manufacturing

overhead costs:

Variable costs P56,250

Fixed costs 45,000

The fixed costs include a normal P6,800 allocation for in-house design

costs, although no in-house design will be done. Instead, the special

job will require the use of external designers costing P13,750. What is

the minimum acceptable price of the job?

A. P63,050 C. P101,250

B. P70,000 D. P108,200

76.Company L had its operating asset turnover increased by 50% and the

operating income margin increased by 50%. Company U had its

operating asset turnover increased by 30% and the operating income

margin decreased by 30%. What changes are expected for ROI of

Company L and Company U, respectively?

A. B. C. D.

Company L 50% Increase 25%increase 225%increase 125%increase

Company U 9%decrease 9%decrease no change no change

Financial Statement Analysis

118. Sales (in millions) for a three year period are: Year 1 P4, Year 2

P4.6, and Year 3 P5.0. Using Year 1 as the base year the percentage

increase in sales in Years 2 and 3 are, respectively

A. 115% and 125% C. 115% and 130%

B. 115% and 109% D. 87% and 80%

119. A company has total sales of P300,000 with a gross profit ratio of

35%. Inventory at the beginning of the period was P50,000 and at the

end of the period was P70,000. Net income is P40,000. Inventory

turnover is

A. 5 times C. 1.75 times

B. 3.25 times D. 0.67 times

120. The times interest earned ratio of McHoggan Company is 4.5times.

The interest expense for the year was P20,000 and the company's tax

rate is 40%. The company's net income is:

A. P22,000 C. P42,000

B. P54,000 D. P66,000

121. If the North Division of Alliance Products Company had an operating

asset turnover of 4.2 and an operating income margin of 0.10, the

return on investment would be

A. 23.8% C. 42.0%

B. 420.0% D. 4.2%

122. Selected data from Sheridan Corporation's year-end financial

statements are presented below. The difference between average and

ending inventory is immaterial.

Current ratio 2.0

Quick ratio 1.5

Current liabilities P120,000

Inventory turnover (based on cost of sales) 8 times

Gross profit margin 40%

Sheridan's net sales for the year were

A. P800,000 C. P1,200,000

B. P480,000 D. P672,000