Oslo Co.'s industrial photo-finishing division incurred the following expenses last year:

VariableFixed

Direct materialsP200,000

Direct labor150,000

Factory overhead70,000P 42,000

Selling and administrative 30,00048,000

Total P450,000P 90,000

During the year, the division sold 300,000 photo-prints for P2.00 each.

1.How many photo-prints did the division have to sell to break even?

a. 180,000 b.120,000c.90,000d.60,000\

Solution:

2.

What was the division's total contribution margin?

a. P250,000b.P180,000c.P150,000d.P60,000

Solution:

3.If the division produces and sells 350,000 photo-prints, its total expenses would be:

a. P525,000b.P540,000c.P615,000d. P630,000.

Solution: