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Problem 1 (Comprehensive Exercise): The following information pertains to Cavite Corporation regarding its only product. _Eil Fixed Overhead Eil Variable Selling and Administrative Fixed Sellin

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Problem 1 (Comprehensive Exercise): The following information pertains to Cavite Corporation regarding its only product. _Eil Fixed Overhead" Eil Variable Selling and Administrative Fixed Sellin and Adrninistrative* *Based on the normal capacity of 10,000 units Required: 1. Compute the contribution margin per unit and ratio. 2. Construct the company's contribution approach income statement assuming that it was able to sell 10,000 units. 3. Compute the company's break-even point. 4. How many units does the company needed to sell if it wants to earn a before tax profit of P20,000? 5. Compute the company's margin of safety and degree of operating leverage under the three income situations mentioned above. Problem 2 (Comprehensive Exercise): The following is Laguna Corporation's contribution format income statement for last month: P 2,000,000 Variable Costs 1,400,000 600,000 360,000 240,000 The company has no beginning or ending inventories. A total of 40,000 units were produced and sold last month. Required: 1. The company's contribution margin ratio was: To attain a targeted profit of P 300,000, the company's sales (in units) would need to be: The company's break-even point (in sales units] is: If sales increase by 200 units, net income would increase by: The company's margin of safety in peso and as a percentage of sales is: The company's degree of operating leverage is: .035\"wa

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