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Complete solutions please 3. LANZONES Company's product sells for Php16 and has a variable cost per unit of Php12. Fixed costs are Php 120,000 a.
Complete solutions please 3. LANZONES Company's product sells for Php16 and has a variable cost per unit of Php12. Fixed costs are Php 120,000 a. Compute the break-even point in units and pesos b. Lanzones has a target profit of Php36,000 and expects to sell 30,000 units. Compute the selling price Lanzones must charge to earn the target profit. Lanzones wants to keep its selling price at Php 16 per unit and earn a 10% return on sales. Compute for the units that must be sold to meet this target. c. d. Compute the total peso sales Lanzones must have to earn a Php30,000 profit. e. Consider the computed peso sales in requirement d, determine the margin of safety f. g. Consider the degree of operating leverage in f, determine the income (or loss) that percentage at that level. Consider the peso sales in requirement d, determine the degree of operating leverage at that level should result from a 14% increase in sales that should result from a 10% decrease in sales. h. Consider the degree of operating leverage in f, determine the operating income (or loss)
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