Disney Company produces 2 products, Mickey and Minnie. In producing 1 unit of product Mickey, the components are the

following: 3 units of raw material (RM) A, 2 units of RM B, 5 units of RM C, and 12 units of RM D. While producing each unit of product Minnie, the components are: 5 units of RM A; 12 units of RM C and 4 units of RM D. The prices/ costs of the raw materials are listed below

Below are the fixed cost costs:

Rental - 75,000/month

Utilities - 50,000/month

Salaries - 300,000/month

Supplies - 20,000/month

Miscellaneous - 30,000/month

Cost of each raw materials (RM):

A- Php 13.00/unit

B- 2.50

C- 3.65

D- 1.25

Variable cost (Labor):

Producing product Mickey involves 15 production workers and 10 people for the production of product, Minnie. All the production workers are being paid with a minimum wage of 366 per day. There are 26 working days in each month.

1. Compute the unit cost/average cost of product Mickey and Minnie on the basis of monthly expenses. There are 15,000 units of product Mickey being produced and 9,000 units of product Minnie produced per month.

2. Compute the selling price of both product Mickey and Minnie with a markup of 40.25%.

3. Compute the breakeven point of product Mickey only. (assuming the company only produce product Mickey)

4. How much should be the BEP in pesos, if Disney Company would like to target a monthly profit of Php 1,000,000 assuming it will only produce product, Mickey?

5. Compute the total production cost incurred by Disney Company in producing both products being stated above on a monthly basis.

6. How much will be the profit derived by Disney Company per month in producing both products?

salaries for fixed cost and for variable cost