Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 3 (Comprehensive Exercise): Baguio, Inc. produces only one product, berry baskets, which it sells for P72 each. Unit variable costs are P32 and total

image text in transcribed
image text in transcribed
Problem 3 (Comprehensive Exercise): Baguio, Inc. produces only one product, berry baskets, which it sells for P72 each. Unit variable costs are P32 and total fixed expenses are P15,000. Actual sales for the month of June totaled 2,000 units. Required: 1. How much is the current operating income of the company? 2 Compute the break-even point in peso and in units 3. Compute the margin of safety in units and peso for the company for June. 4 Compute the degree of operating leverage for the month of June. Problem 4 (BreakEven Point and Target Profit): One of Zamboanga Corp.'s only products has the following information: Selling Price P 15 Variable Cost per Unit 10 Total Fixed Cost P 25,000 The following questions are independent of each other: 1. 'What is the Break-Even Point in Units and in Peso Sales? 2. How many units must be sold if the company wants to earn a profit of P20,000 Problem 5 Margin of Safety andr Degree of Operating Leverage): Manila Corporation has the following information: Units sold 20,000 Sales P 300,000 Variable costs 210 000 Contribution margin 90,000 Fixed costs 60,000 Net income P 30,000 Required: Determine tlie following: 1. The break-even point in peso sales. 2. The margin of safety in peso sales and as a percentage. 3. Compute the degree of operating leverage

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Carl Warren, William B. Tayler

15th edition

1337912026, 978-1337912020

More Books

Students also viewed these Accounting questions

Question

8. What values do you want others to associate you with?

Answered: 1 week ago