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IE 137: Managerial Accounting 1. Lynch Company sells three types of product, Ryon, Lion, and Lay-on. These products are sold at a ratio of 5:2:3

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IE 137: Managerial Accounting 1. Lynch Company sells three types of product, Ryon, Lion, and Lay-on. These products are sold at a ratio of 5:2:3 per sale. Selling prices and variable cost ratios are as follows: Ryon Lion Lay-on Selling Price P20.00 P30.00 P15.00 Variable Cost Ratio 75% 70% 60% Total fixed costs amount to P305,000.00 Required: a) Determine the Break-even point in units for each product. b) If the sales mix ratio were changed to 3:5:2, what will be the new break-even point in units for each product? 2. Tylus company's product is sold at P25.00 per unit. The variable cost is 75% of sales while fixed cost amounts to P625,000.00. what is the break-even point in units? 3. At break-even point of 50,000 units, total fixed costs amount to P100,000. Assuming the selling price is P5.00 per unit, what is the unit variable cost? 4. Eneliko Company installs home theater systems. The company's most recent monthly contribution format income statement appears below: Amount Percent of Sales Sales $120,000 100% Variable Expenses 84,000 70% Contribution Margin 36,000 30% Fixed Expenses 24,000 Net Operating Income $12,000 Required: a) Compute the company's operating leverage factor. b) Using the operating leverage factor, estimate the impact on net operating income of a 10% increase in sales

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