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Can you help me to answer this. This is Managerial Accounting. Ex. 5-8. Application of Break-Even and other CVP Formules. Determine the required item for
Can you help me to answer this. This is Managerial Accounting.
Ex. 5-8. Application of Break-Even and other CVP Formules. Determine the required item for each of the following independent cases: a. Total fixed cost is P510,000. The variable cost ratio is 40%. How much is the break-even point? b. The company's product is sold for P2S per unit. The variable cost is 75% of sales while total fixed cost amounts to P625,000. What is the break-even point in units? c. Each unit of the company's product contributes P22 to the recovery of fixed cost and generation of profit. Total fixed cost is P440,000. What is the break-even point in units? d. The company's contribution margin is 25% of sales. The selling price is PSO per unit. Total fixed cost amounts to P250,000. How many units must be sold in order to break-even? e. At break-even point of 50,000 units, total fixed cost enounts to p100,000. Assuming that the selling price is P5.00 per unit, that is the unit variable cost? Ex. 5-9. Variable Costing Income Statement and Changes in Profit Fectors. Alexa Company sells its oroduct at P25 per unit. Monthly fixed costs; composed of manufacturing, selling and administrative costs amount to P350,000. Var 1able costs amount to P15.00 per unit, composed of P6.00 selling and administrative costs and P9.00 manufacturing. The company expects to sell 40,000 units of product in the coming month. Required: 1. Determine the projected income from operations of Alexa Company for the coming month. Use the variable costing income statement format illustrat 3 on page 186. 2. Determine the break-even point in units and in pesos. 3. Determine the margin of safety (in pesos) using the budgeted sales of 40,000 units. 4. Consider the changes in the profit factors described in the independent cases given below. Determine the new profit, profit percentage, break-even point and margin of safety figures if such changes were effected. Use the suggested format provided below. Changes in profit factors: a. Selling price will increase by P5.00 per unit. 229 b. Volume will go down by 2,000 units. c. Variable cost per unit will g up by 10%. d. Fixed cost will increase to $360,000. e. Selling price will decrease by 20\%, resulting into an 80% increase in volume. f. Fixed cost will go down by P50,000. This will cut production and sales volume by 50%. g. Included in the P6.00 variable selling and administrative cost. is salesmen's commissiorr of P2.00 per unit. In the coming month, these salesmen will te paid fixed salary of P30,000 (total amount) instead of the commission of P2.00 per unit. This change in payment scheme is expected to decrease volume by 3,000 units. Suggested formatStep by Step Solution
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