cost Accounting
23) Kendall Company has sales of 1,000 units at P60 a unit. Variable expenses are 30% of the selling price. If total fixed expenses are P30,000, the degree of operating leverage is: A. 1.50 B. 5.0 C. 1.67 3.50 24) Brown Company has sales of 2,000 units at P70 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are P44,000, the degree of operating leverage is: A. 0.79 B. 1.40 C. 3,50 D 2.10 25) The Oregano Watch Company manufactures a line of ladies' watches which are sold through discount houses. Each watch is sold for P1,500; the fixed costs are P3,600,000 for 30,000 watches or less; variable cost is P900 per watch. What is Oregano's degree of operating leverage at sales of 12,000 watches? A. 2.0 times B. 5.0 times C. 0.5 times D. 0.2 times 26) Chris Brown Company sells two products with the following per unit data: Apple Orange Selling price P 75 P 120 Variable cost 45 60 Contribution margin 30 60 Sales mix 3 units 2 units If fixed costs are P630,000, the number of Apple and Orange units that Chris Brown must sell to break even is A. 1,800 Apple and 1,200 Orange B. 9,000 Apple and 6,000 Orange C. 3,600 Apple and 2,400 Orange D. 21,000 Apple and 14,000 Orange 27) Look At You is a company with P280,000 of fixed costs has the following data: Product Sword Product Shield Sales price per unit P5 P6 Variable cost per unit P3 P5 Assume three units of Product Sword are sold for each unit of Product Shield sold. How much will sales be in peso of Product Shield at the breakeven point? A. 200,000 B. 240,000 Page 4 of 5 C. 280,000 D 840,000 28) Wren Co. manufactures and sells two products with selling prices and variable costs as follows: Product A Product B Selling price P18.00 P22.00 Variable costs 12.00 14.00 Wren's total annual fixed costs are P38,400. Wren sells four units of A for every unit of B. If operating income last year was P28,800, what was the number of units Wren sold? A. 5,486 6,000 9,600 10,500 29) Ace Manufacturing plans to produce two products, Gold and Silver, during the next year, with the following characteristics: Gold Silver Selling price P 10 P 15 Variable cost per unit 10 Expected sales 20,000 units 5,000 units Total projected fixed costs for the company are P30,000. Assume that the product mix would be the same at the breakeven point as at the expected level of sales of both products. What is the projected number of units (rounded) of the Product Gold to be sold at the breakeven point? A. 2,308 units B. 9,231 units C. 11,538 units D. 15,000 units 30) The following revenues and cost budget for two products, Sakit Company sells are made available: Plastic Product Glass Product Sales price P 50 P 75 Direct materials 10 15 Direct labor 15 25 Fixed overhead 15 20 Net income per unit 15 Budgeted unit sales 150,000 units 300,000 units The budgeted unit sales equal the current unit demand, and total fixed overhead for the year is budgeted at P4,875,000. Assume that the company plans to maintain the same proportional mix. In numerical calculations, the company rounds to the nearest centavos and units. The total number of units Sakit Company needs to produce and sell to breakeven is A. 102,632 units B. 153,947 units C. 171,959 units D. 418,455 units
