Question
The income statement for one of Manhattan Companys products shows: : Sales (100 units at Php 100 a unit) 10,000 Cost of goods sold: Direct
The income statement for one of Manhattan Company’s products shows: :
Sales (100 units at Php 100 a unit) 10,000
Cost of goods sold:
Direct labor 1,500
Direct materials used 1,400
Variable factory overhead 1,000
Fixed factory overhead 500 4,400
Gross profit 5,600
Marketing expenses:
Variable 600
Fixed 1,000
Administrative expenses:
Variable 500
Fixed 1,000 3,100
Operating income 2,500
Required:
1. Compute the break-even point in units.
2. If sales increase by 25% how much will be the new operating income?
3. Compute the new break-even point in pesos if fixed factory overhead will increase by Php 1,700.
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Get StartedRecommended Textbook for
Operations Management Creating Value Along the Supply Chain
Authors: Roberta S. Russell, Bernard W. Taylor
7th Edition
9781118139523, 0470525908, 1118139526, 978-0470525906
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