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KJ Corp. produces and sells a single product. The selling price is P25 and the variable co P15 per unit. The corporation's fixed costs
KJ Corp. produces and sells a single product. The selling price is P25 and the variable co P15 per unit. The corporation's fixed costs is P100,000 per month. Average monthly sal 11,000 units. Compute for the following: 1. Contribution margin ratio (CMR) 2. Break even point (BEP) in units and in peso 3. Operating Profit 4. Margin safety ratio (MSR) 5. Degree of Operating Leverage (DOL) If the corporation desires a profit of P20,000 before tax, it must generate sales of? If the corporation desires a profit of P21,000 after deducting tax at 30%, it must genera sales of? How many units must be sold to earn profit of P2 per unit? If fixed costs will increase by P20000, the BEP in units will increase (decrease) by? If variable cost per unit will go up by P5, the BEP in peso will increase (decrease) by? If selling price will increase by 20%, the BEP in units will be increase(decrease) to?
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