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answer the following Problem 20 (Multi-Product): Cavite Corporation currently produces and sells three products, Alpha, Beta, and Charlie. The current sales mix is as follows:

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Problem 20 (Multi-Product): Cavite Corporation currently produces and sells three products, Alpha, Beta, and Charlie. The current sales mix is as follows: 2 Alpha for 1 Beta and 1 Beta is to 1 Charlie. Alpha's selling price and variable cost is P10 and P6 respectively while Beta's selling price is P20 and its contribution margin per unit amounted to P5. Charlie's Contribution Margin ratio is 30%. The company's total fixed cost is P165,000 and the total break-even point in units is 30,000. Required: 1. What was the weighted average contribution margin per unit? 2. What is Charlie's selling price? 3. If Alpha's current unit sales are 20,000 units, how much was the company' current operating income? 4. If the company's target profit is P 55,000, how much would be the volume of Beta? doi bas Problem 21 (Changes in Structure): Match Company reports the following results for the month of November: Units sold ed of basicnors 10,000 Sales P 600,000 Variable costs 420,000 Contribution margin 180,000 Fixed costs 110,000 Net income P 70,000 tied Jon Bolsa Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 6% with no change in units sold. 2. Reduce variable costs to 65% of sales. 3. Reduce fixed costs by P 20,000 4. Reduce fixed costs by P 10,000 while increasing variable costs to P4.50 per unit 23 | Chapter 5: Cost - Volume - Profit Analysis

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