CASE NO. 1

UrTurn sells its products at P80 per unit with the unit variable cost of P55. Its fixed cost is P81,000. How many units must be sold to achieve the following (tax rate is at 40%)

1. What is the breakeven point in units?

2. What is the break even point in Peso amount?

3. Break even point in peso for a minimum of P5,000 required after tax income.

4. Minimum after tax income of 15% of Sales

CASE NO. 2

UrTurn sells its products at P80 per unit with the unit variable cost of P55. Its fixed cost is P81,000. How many units must be sold to achieve the following (tax rate is at 40%)

Suppose that its target pre-tax income is P50,000. The company is presently selling 5,000 units. To increase sales, the management is considering an advertising program that will cost P13,000. The management estimates that this will increase sales 500 units. What should be the minimum increase in sales (in units) so that the company could really consider advertising the product.

Show your solution.

CASE NO. 3

COA Manufacturing Company's budget for the coming year revealed the following unit data.

Budgeted Net Income : P458,000

Variable Manuf. : P14

Variable Selling : P2.50

Variable General : P 0.25

Unit Selling Price: P50

Fixed Manuf. : P12

Fixed Selling : P5.50

Fixed General : P 7

Compute for the margin of safety in peso and in percentage.

CASE NO. 4

Calculate the break even point for the sales mix , both in peso and in units.

Product A:

Selling Price/unit : P150

Variable Cost/unit : P90

Sales mix percentage : 20%

Product B:

Selling Price/unit : P210

Variable Cost/unit : P140

Sales mix percentage : 20%

Product C:

Selling Price/unit : P360

Variable Cost/unit : P190

Sales mix percentage : 60%

Total Fixed Cost : P400,000

Show your solution.