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Product A has a selling price of P50 per unit and variable expenses of P30 per unit. If the company is past its break-even point

  1. Product A has a selling price of P50 per unit and variable expenses of P30 per unit. If the company is past its break-even point and sales increase by P200,000, one would expect net income to increase by?

  1. If sales increase from P400,000 to P450,000 and is the degree of operating leverage is 6 (contribution margin divided by net income), one would expect net income to increase by?

  1. Selling Price P60; Contribution Margin ratio is 30%; Fixed costs P150,000; the total variable expenses at the break-even point would be?

  1. As company moves further from its break-even point, on would expect the degree of operating leverage to?

  1. The most important use of the CVP Graph is to show?

  1. In multiple product firms, a shift in the sales mix from less profitable products to more profitable products will cause the companys break-even point to?

  1. If the total margin increases and fixed costs do not change, then net income can be expect to?

  1. The break even point is given situation would be decreased by an increase in?

  1. Hannah company sells a single product at sales price of P50 per unit. Fixed cost total P15,000 per month and variable costs amounts to P20 per unit. If management reduces the sales price of this product by P5 per unit, the sales volume needed to break-even will? (state if increase by or remain with amount)

  1. GMA company earns an average contribution margin ratio of 40% on its sales. The store manager estimates that by spending an additional P5000 per month for radio advertising, the store will be able to increase its operating income by P3000 per month. The manager is expecting the radio advertising to increase monthly peso volume by?

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