Ex$.1$

Aileen Company makes student book bags that sell for Php$20$ each. For the coming year, management expects fixed costs to be Php$240,000.$ Variable costs are Php$15$ per unit.

Instructions

$($a$)$ Compute break$-$even sales in dollars using the mathematical equation.

$($b$)$ Compute break$-$even sales using the contribution margin ratio.

$($c$)$ Compute margin of safety ratio assuming actual sales are Php$1,200,000.$

$($d$)$ Compute the sales required to earn a net income of Php$120,000,$ using the mathematical equation.

Ex$.2$

Fantastic Sports earned net income of Php$100,000$ during $2022.$ The company wants to earn a net income of Php$40,000$ more during $2023.$ The company's fixed costs are expected to be Php $84,000,$ and variable costs are expected to be $30\%$ of sales.

Instructions

$($a$)$ Determine the required sales to meet the target net income during $2023.$

$($b$)$ Fill in the dollar amounts for the summary income statement for $2023$ below, based on your answer to part $($a$).$

Sales revenue Php

Variable costs

Contribution margin

Fixed costs

Net income Php

Ex$.3$

Roadjun Company reports the following results for the month of November:

$\backslash$table$[[$Sales $(10,000$ units$),$Php$600,000],[$Variable costs,$420,000],[$Contribution margin,$180,000],[$Fixed costs,$1110,000],[$Net income,Php $70,000]]$

Management is considering the following independent courses of action to increase net income.

Increase selling price by $6\%$ with no change in total variable costs.

Reduce variable costs to $65\%$ of sales.

Reduce fixed costs by Php $20,000.$