A.

1. In a sales mix break-even problem. Total fixed costs divided by the package contribution margin is to arrive at the
   1. Total units to break-even
   2. Units to break-even for a particular product in the mix
   3. Total break-even sales pesos
   4. Composite break-even point in units
2. Margin of safety ratio is computed by dividing excess of actual or budgeted sales from break-even sales or it can be determined by
   1. Dividing contribution margin ratio by variable cost ratio
   2. Dividing profit ratio by contribution margin ratio
   3. Dividing contribution margin ratio by profit ratio
3. What is the product contribution margin?
   1. Sales minus all variable costs
   2. Sales minus variable cost of goods sold
   3. Sales minus all fixed costs.
   4. Sales minus fixed manufacturing overhead.

B.

Alpha Company Selected Financial Data

Year Ended December 31
Accounts		2017	2018
Cash	$	10,000	80,000
Marketable securities		30,000	10,000
Accounts receivable, net		50,000	150,000
Inventories		90,000	150,000
Land and Building, net		340,000	360,000
Notes payable, Trade		70,000	110,000
Accounts payable, Trade		20,000	40,000
Year Ended December 31
		2017	2018
Net sales	P	500,000 P	800,000
Cost of sales		1,000,000	1,400,000

Note: use 360 days for computation of receivable and inventory turnover days.

1. Alpha acid-test (quick) ratio as of December 31, 2017 is:

a. 0.50 to 1 b. 0.70 to 1 c. 1.0 to 1 d. 2.0 to 1

2. Alps current ratio at December 31, 2017 is

a. 0.50 to 1 b. 0.70 to 1 c. 1.0 to 1 d. 2.0 to 1

3. Alps receivable turnover for 2017 is
   1. 5 times b. 10 times c. 23 times d. 46 times

4. Alps average collection period of receivable is;
   1. 72 days b. 36 days c. 15.65 days d. 7.83 days

5. Alps inventory turnover for 2017 is:
   1. 8.3 times b. 10 times c. 11.1 times d. 13.3 times

6. Alps inventory days turnover for 2017 is:
   1. 43.37 days b. 36 days c. 32.43 days d. 27.07 days