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CAFA Company is selling two products: Reading and Practice. Relevant information are as follows: Volume (in units) Reading 500 Practice 1,500 Sales Price per
CAFA Company is selling two products: Reading and Practice. Relevant information are as follows: Volume (in units) Reading 500 Practice 1,500 Sales Price per unit P390 P525 Variable cost per unit: Direct materials P100 P154 Direct labor 75 116 FOH 50 77 Selling & administrative 25 38 Total Fixed cost: FOH P45,000 Selling and administrative 95,000 Required: 1. Determine the break even point in units and in pesos. 2. Determine the profit at 4,000 units. 3. Present a comparative income statement showing P140,000 profit using: c) Functional income statement d) Contribution margin income statement
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