****No need for explanations just simple solutions of all the questions starting number 7
for number 8:
The breakeven sales in pesos and units of each product group for 19A, based on the actually experienced sales mix.
(e) Refer to the original data. If the store manager were paid P1.00 per pair as commission on each pair sold in excess of the breakeven point, what would be the store's net income if 50,000 pairs were sold? (7.) Suppose that the Blanton Company has the following budget data for 19xx. Product X Y Total Selling price P3 P6 Variable expenses 1 2 Contribution margin P2 P4 Total fixed expenses 100,000 120,000 No. of units sold to ? ? ? breakeven No. of units expected to be 30,000 50,000 80,000 sold Required: a) Compute the breakeven point for each product. b) Suppose that Products X and Y were made in the same plant. Assume a prolonged strike at the factory of the sole supplier of raw materials prevented the production of x for all of 19xx. Assume also that the Blanton fixed costs were unaffected. b1) What is the breakeven point for the company as a whole, assuming that no X is produced? b2) Suppose instead that the shortage applied so that only X and no Y could be produced. Then what is the breakeven point for the company as a whole? c) Draw a breakeven chart for the company a whole, using an average selling price and an average variable expense per unit. What is the breakeven point under this aggregate approach? What is the breakeven point if you add together the individual breakeven points that you computed in requirement 1? Why is the aggregate breakeven point different from the sum of the individual breakeven points? (8.) Tighaw Bottling Company produces a variety of bottled drinks. The company has classified its products into these categories. Brand Name Selling price per Variable cost per bottle bottle Mango P1.50 P1.40 Guyabano 1.20 1.00 Grape 1.00 0.40 The fixed cost of the company is P36,240 annually and does not change with any change in product mix or with total volume changes of less than 50%. During 19A, sales of Mango accounted for 50% of the company's total sales in bottles. Sales of Guyabano were four times that of Grape. Total sales revenue for the year was P500.000. Required: IECOSAC Handouts page 16 pe WE
