Answer the following CVP Analysis.

Present your answers and supporting solutions in good form.

Problem 1

Kardashyan Company manufactures designer jeans, within a relevant range of 200-250 jeans per month.Within this range, the following partially completed manufacturing cost schedule has been prepared.

Number of jeans produced200225250

Total costs:

Total Variable costsP 100,000(?)(?)

Total fixed costs700,000(?)(?)

Total costsP 800,000(?)(?)

Cost per unit:

Variable cost per unit(?)(?)(?)

Fixed cost per unit(?)(?)(?)

Total cost per unit(?)(?)(?)

Instructions:Complete the cost schedule.

Problem 2

For the coming year, Kanye Company anticipates a unit selling price of P 100, a unit variable cost of P 60, and total fixed costs of P 480,000.

Instructions:

1. Compute the anticipated break-even sales in pesos and also in units.
2. Compute the number of units to be sold that is required to realize a target profit of P 240,000.
3. Determine the probable income or loss from operations if sales total 16,000 units.

Problem 3

Trainor Company, operating at full capacity, sold 50,000 units at a price of P 125 per unit during the month of June.Its income statement for June is as follows:

SalesP6,250,000

Cost of goods sold (30% is fixed, 70% is variable)3,437,500

Gross profit2,812,500

Expenses:

Selling expenses (10% fixed, 90% variable)P650,000

Administrative expenses (80% fixed, 20% variable)530,000

Total Expenses1,180,000

Income from operationsP1,632,500

Management is considering a plant expansion program that will permit an increase of P 2,000,000 in monthly sales.The expansion will increase fixed costs by P 500,000, but will not affect the relationship between sales and variable costs.

Instructions:

1.Determine for June the total fixed costs and variable costs.For example, cost of goods sold is done for you as follows:

(Given)

Total CostsFixed CostsVariable Costs

Cost of goods sold3,437,5001,031,250 (30%)2,406,250 (70%)

Selling expenses650,000??

Administrative expenses530,000??

Total??

2.Compute for the June (a) unit variable cost and (b) the unit contribution margin.

3.Compute the break-evens ales in units for June.

4.Compute the break-even sales in units under the proposed program.

5.Determine the amount of sales in units that would be necessary under the proposed program to realize the P 1,632,500 desired income or target profit that was earned in June.

Click on the following files here:

1.https://www.investopedia.com/terms/b/breakevenanalysis.asp

2.https://courses.lumenlearning.com/suny-hccc-introbusiness/chapter/the-break-even-point-2/

3.https://courses.lumenlearning.com/wmopen-accountingformanagers/chapter/break-even-point-analysis/

Variable and Fixed Costs Movements Over a Relevant Range

CVP-Relevant Range (3) - Excel (Unlicensed Product) elizabeth unabia X File Home Insert Page Layout Formulas Data Review View Help Tell me what you want to do & Share 86 Cut AutoSum Calibri - 11 - A A 2 Wrap Text AY O Be Copy Fill Paste BIU - - - A- Merge & Center Conditional Format as Cell Insert Delete Format Sort & Find & Format Painter Formatting * Table Styles Clear Filter * Select Clipboard Font Alignment Number Styles Cells Editing i NOTICE Most features are disabled because your Office product is inactive. To use for free, sign in and use the Web version. Activate Use free at Office.com X A017 X V B D E G H J K M N O P Q R S T U V A The purpose of this exercise is to let you see the basic movements Step 1: Compute for the Cost per unit ( a,b and c) by dividing the total cost with Step 2: Since the unit varial and relationships of variable and fixed costs with units produced. the number of units (a = 250/200; b = 600/200, and c = 850/200) for 200 and 400 u GIVEN: remain the same Number of units produced 200 400 600 Number of units produced 200 400 600 Number of units produced Total Costs Total Costs Total Costs 9 Total Variable Costs 250 d Total Variable Costs 250 d Total Variable Co 10 Total Fixed Costs 600 Total Fixed Costs 600 k Total Fixed Costs 11 12 Total Costs 850 1I- Total Costs 850 Total Costs 13 14 15 Cost per Unit Cost per Unit Cost per Unit 16 Variable cost per unit m Variable cost per unit 1.25 m Variable cost per a 15 09 17 Fixed cost per unit n Fixed cost per unit 3.00 n Fixed cost per un 18 19 Total cost per unit Total cost per unit 4.25 11-' Total cost per uni 20 21 Sheet1 + Scroll Lock Average: 1.833333333 Count: 3 Sum: 5.5 + 100% 9:08 PM Type here to search meaLy 3 A 6 9 / ENG 23/02/2021CVP-Relevant Range (3) - Excel (Unlicensed Product) elizabeth unabia X File Home Insert Page Layout Formulas Data Review View Help Tell me what you want to do & Share 86 Cut AutoSum Calibri - 11 - A A 2 Wrap Text AY O Be Copy Fill Paste BIU - - -A- Merge & Center Conditional Format as Cell Insert Delete Format Sort & Find & Format Painter Formatting * Table Styles Clear Filter * Select Clipboard Font Alignment Number Styles Cells Editing i NOTICE Most features are disabled because your Office product is inactive. To use for free, sign in and use the Web version. Activate Use free at Office.com X A017 X V K M N O P Q R S T U V W X Y Z AA AB AC AC - Step 1: Compute for the Cost per unit ( a,b and c) by dividing the total cost with Step 2: Since the unit variable cost does not change, copy this to g and m Step 3: Multiply the number of units (a = 250/200; b = 600/200, and c = 850/200) for 200 and 400 units produced, respectively. And since total fixed cost to con remain the same, copy this to e and k, for 200 and 400 units. Note: Total Unit V Number of units produced 200 400 600 Number of units produced 200 400 600 Number of units 00 Total Costs Total Costs Total Costs 9 Total Variable Costs 250 d Total Variable Costs 250 d Total 10 Total Fixed Costs 500 e Total Fixed Costs 600 600 600 Total 11 12 Total Costs 350 Total Costs 850 I Total 13 14 15 Cost per Unit Cost per Unit Cost per Unit 16 Variable cost per unit 1.25 m Variable cost per unit 1.25 1.25 1.25 Variab 17 Fixed cost per unit 3.00 n Fixed cost per unit 3.00 h n Fixed 18 19 Total cost per unit 4.25 Total cost per unit 4.25 Total 20 21 Sheet1 + Scroll Lock Average: 1.833333333 Count: 3 Sum: 5.5 + 100% 9:08 PM Type here to search meaLy 3 A 6 ' / ENG 23/02/2021CVP-Relevant Range (3) - Excel (Unlicensed Product) elizabeth unabia X File Home Insert Page Layout Formulas Data Review View Help Tell me what you want to do & Share 86 Cut AutoSum Calibri - 11 - A A 2 Wrap Text AY O Be Copy Fill Paste BIU - - -A- Merge & Center Conditional Format as Cell Insert Delete Format Sort & Find & Format Painter Formatting * Table Styles Clear Filter * Select Clipboard Font Alignment Number Styles Cells Editing i NOTICE Most features are disabled because your Office product is inactive. To use for free, sign in and use the Web version. Activate Use free at Office.com X A017 X V S T U W X Z AA AB AC AD AE AF AG AH Al AJ AK AL AN - Step 2: Since the unit variable cost does not change, copy this to g and m Step 3: Multiply the variable cost per unit by the number of units produced Step 4: Divide th AWN - for 200 and 400 units produced, respectively. And since total fixed cost to compute for total variable costs (d = 1.25 x 400 units; j = 1.25 x 600) to con remain the same, copy this to e and k, for 200 and 400 units. Note: Total Variable costs increase proportionately to units produced, but Note: Total Unit Variable costs remain the same. Unit F Number of units produced 200 400 600 Number of units produced 200 400 600 Number of units 00 Total Costs Total Costs Total Costs 9 Total Variable Costs 250 d Total Variable Costs 250 500 750 Total 10 Total Fixed Costs 500 600 600 Total Fixed Costs 500 600 500 Total 11 12 Total Costs 350 Total Costs 850 11-h Total 13 14 15 Cost per Unit Cost per Unit Cost per Unit 16 Variable cost per unit 1.25 1.25 1.25 Variable cost per unit 1.25 1.25 1.25 Variab 17 Fixed cost per unit 3.00 h n Fixed cost per unit 3.00 h n Fixed 18 19 Total cost per unit 4.25 Total cost per unit 4.25 Total 20 21 Sheet1 + Scroll Lock Average: 1.833333333 Count: 3 Sum: 5.5 + 100% Type here to search MeaLy 9:09 PM 3 X 23/02/2021CVP-Relevant Range (3) - Excel (Unlicensed Product) elizabeth unabia X File Home Insert Page Layout Formulas Data Review View Help Tell me what you want to do & Share 86 Cut - 11 - A A AutoSum Calibri 2 Wrap Text AY O Be Copy Fill Paste Format Painter BIU - - -A - Merge & Center Conditional Format as Cell Insert Delete Format Sort & Find & Formatting Table Styles Clear Filter * Select Clipboard Font Alignment Number Styles Cells Editing i NOTICE Most features are disabled because your Office product is inactive. To use for free, sign in and use the Web version. Activate Use free at Office.com X A017 X v fx AB AC AD AE AP AG AH Al AJ AK AL AM AN AO AP AQ AR AS AT AU Step 3: Multiply the variable cost per unit by the number of units produced Step 4: Divide the total fixed cost per unit by the number of units produced Step 5: Add up WN - to compute for total variable costs (d = 1.25 x 400 units; j = 1.25 x 600) to compute for the unit fixed costs (h = 600/ 400 units; n = 600 /600) (f = 9 Note: Total Variable costs increase proportionately to units produced, but Note: Total Fixed costs remain the same regardless of units produced, but Unit Variable costs remain the same. Unit Fixed costs go down as more units share in the same total fixed costs Number of units produced 200 400 600 Number of units produced 200 400 600 Number of uni 00 Total Costs Total Costs Total Costs 9 Total Variable Costs 250 500 750 Total Variable Costs 250 500 750 Tota 10 Total Fixed Costs 600 600 Total Fixed Costs 600 600 600 Tota 11 12 Total Costs 350 Total Costs 850 I ! Tota 13 14 15 Cost per Unit Cost per Unit Cost per Unit 16 Variable cost per unit 1.25 1.25 1.25 Variable cost per unit 1.25 1.25 1.25 Varia 17 Fixed cost per unit 3.00 h n Fixed cost per unit 3.00 1.50 1.00 Fixe 18 19 Total cost per unit 4.25 Total cost per unit 4.25 Tota 20 21 Sheet1 + Scroll Lock Average: 1.833333333 Count: 3 Sum: 5.5 + 100% meaLy 9:09 PM Type here to search 3 X 23/02/2021CVP-Relevant Range (3) - Excel (Unlicensed Product) elizabeth unabia X File Home Insert Page Layout Formulas Data Review View Help Tell me what you want to do & Share 86 Cut AutoSum Calibri - 11 - A A 2 Wrap Text AY O Be Copy Fill Paste Format Painter BIU - - - A- Merge & Center Conditional Format as Cell Insert Delete Format Sort & Find & Formatting * Table Styles Clear Filter * Select Clipboard Font Alignment Number Styles Cells Editing i NOTICE Most features are disabled because your Office product is inactive. To use for free, sign in and use the Web version. Activate Use free at Office.com X BB8 X v fx Al AJ AK AL AM AN AO AP AQ AR AS AT AU AV AW AX AY AZ BA BB E - 2 hits produced Step 4: Divide the total fixed cost per unit by the number of units produced Step 5: Add up the total costs and cost per unit. 3 its; j = 1.25 x 600) to compute for the unit fixed costs (h = 600/ 400 units; n = 600 /600) (f = 500+600; I = 750+600) (i = 1.25+ 1.50; o = 1.25+1.00) is produced, but Note: Total Fixed costs remain the same regardless of units produced, but Unit Fixed costs go down as more units share in the same total fixed costs 600 Number of units produced 200 400 600 Number of units produced 200 400 600 Total Costs Total Costs LD CO 750 Total Variable Costs 250 500 750 Total Variable Costs 250 500 750 10 500 Total Fixed Costs 600 600 600 Total Fixed Costs 600 600 600 11 12 Total Costs 850 1,100 1,350 II- Total Costs 850 ! 13 14 15 Cost per Unit Cost per Unit 16 1.25 Variable cost per unit 1.25 1.25 1.25 Variable cost per unit 1.25 1.25 1.25 17 n Fixed cost per unit 3.00 1.50 1.00 Fixed cost per unit 3.00 1.50 1.00 18 19 Total cost per unit 4.25 o Total cost per unit 4.25 2.75 2.25 20 21 Sheet1 + Scroll Lock + 100% Type here to search Me BLUE 9:11 PM X 23/02/2021