Managerial Accounting

Instructions: Provide a written solution for each problem. Thank you!

48.

48. If the management will attempt to increase selling price to 78.00 due to increase in variable cost by 1.50 but sales to decrease by 8.00% and fixed cost is to be valued to 96,280.00 while tax rate is to be reduced from 40% to 30%, which of the following statements is true assuming all other factors remain unchanged? a. No effect on contribution margin and CM ratio b. No effect on breakeven pesos and units c. No effect on net income after tax d. No effect on net income before tax Golden Saucer Entertainment Corporation is planning another riverboat extravaganza. The extravaganza committee has assembled the following expected costs for the event: Dinner (per person) 80.00 Souvenir and give-away (per person) 50.00 Band performance 25,000.00 Tickets and advertisements 37,500.00 Riverboat rental 40,500.00 Floorshow and strolling entertainers 17,000.0049. The break-even point for the extravaganza (in terms of number of persons that must attend) assuming each individual is to pay 250.00 will be? a. 900 persons c. 950 persons b. 1,000 persons d. Answer not given50. Suppose the committee decides to reduced tickets and advertising cost by 20,000.00 and further cut dinner charges per person to 50.00. If each individual attendee will only pay 80.00% of the original event price, what would be the break-even point in terms of number of persons? a. 900 persons c. 950 persons b. 1,000 persons d. Answer not given51. Assume that due to limited number of riverboats, the rental was being charged as 50.00 for every person who will board with a capacity of 100 people. Each boat has a minimum charge of 5,000.00 and Golden Saucer already entered into a non-cancellable contract for 10 river boats, what would be the break- even point in terms of number of persons if the price will be increase by 9.50? a. 900 persons c. 950 persons b. 1,000 persons d. Answer not given52. If a special meeting is conducted and a decision is being ntade to increase the dinner cost to l due to special request of the spectators to include desserts and fruits in the meal package and assume the committee also decides to reduced the tickets and advertisement costs to 11,5[l to compensate the increase in dinner per person while still maintaining the original ticket prize. At ceteris pari'ous, what would he the breakeven point in terms of number of persons? a. 900 persons c. 95f] persons h. LEM] persons d. Answer not given n. 53. Suppose there were no available riverboats at that Lime and thus no rentals will be made1 the committee has decided to significantly reduce the selling price of the ticket from its original prize by $0.50 to ensure that the program will be successful. What would be the break-even point in terms of number of person s'? a. Will} persons c. 95C! persons in. Ir persons d. Answer not given a. 188,500.00 c. 199,025.00 b. 209,500.00 d. Answer not given The Accountant of Squall Lion-heart Integrated Industries, a company engages in producing luxury cars presented to the management the chart below: (Note: X-axis unit sold and Y-axis peso equivalent) 17,500,000.00 15,000,000.00 12,500,000.00 10,000,000.00 4-Total Cost 7,500,000.00 Fixed Cost 5,000,000.00 2,500,000.00 1 2 355. If the selling price of luxury car is 2,600,000.00 per unit, what is the breakeven point in units? a. 20 cars c. 30 cars b. 25 cars d. Answer not given56. Assume that a total number of cars produced are 10 units, what is company's fixed cost? a. 250,000.00 c. 2,500.000.00 b. 500,000.00 d. Answer not given57. If the company sold 11 cars at a selling price of 2,800,000.00 each. Under ceteris paribus, net income after tax of 30.00% or loss will be? a. 800,000.00 profit c. 1,700.000.00 loss b. 560,000.00 profit d. Answer not given58. Suppose the out of 20 cars produced only 13 were sold, what is the carrying amount of cars inventory under variable costing? a. 19.250,000.00 c. 17.500,000.00 b. 18.375,000.00 d. Answer not given