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PROBLEM 3 CVP (30 pts) Projected cost information for a new product to be produced by Kulasa Manufacturing is given below. The product is to
PROBLEM 3 CVP (30 pts) Projected cost information for a new product to be produced by Kulasa Manufacturing is given below. The product is to be sold for P49. 10 -. at variable unit costs: Direct materials Direct labor Overhead Selling costs Depreciation on building and equipment Advertising Others Required: Answer in the worksheet should only be those underlined in bold below a. Compute the number of units that must be sold to earn a prot of P80,000. Prove your answer by doing a contribution margin income statement. b. Compute the number of units that must be sold if advertising costs rise by P12,000 and a targeted prot of P 120,000 is to be obtained. c. Use the original information and sales of 10,000 units to compute the new selling m that the company must use to obtain a prot of P200,000. d. The most in annual sales that could be projected is 20,000 units. Determine the added amount that could be spent on xed advertising costs if the highest possible selling price that management believes can be charged is P50 and if there is a targeted prot of P225,000. II. Qualitative question: Looking at the Income Statement and balance sheet of a hospital, as the new administrator of the hospital, what accounts will be of interest to you? What kind of analysis will you use to determine the nancial standing of the hospital? Why? (In not more than 5 sentences.) 5 pts
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