Questions 11 to 20 are based on the following information:

The following information pertains to Rich Mama Company:

Sales (50,000 units) P 1,000,000

Material and labor 300,000

Factory overhead:

Variable 40,000

Fixed 70,000

Selling and General expenses:

Variable 10,000

Fixed 60,000

1. How much was Rich Mama's break-even point in number of units?
2. 9,848 b. 18,571 c. 10,000 d. 26,000

1. What was Rich Mama's variable cost per unit?
2. P 13.00 b. P 7.00 c. P20 d. P 6.00

1. What was Rich Mama's variable cost ratio?
2. 66% b. 65% c. 59% d. 35%

1. What was Rich Mama's contribution margin per unit?
2. P 13.00 b. P 7.00 c. P20 d. P 6.00

1. What was Rich Mama's contribution margin ratio?
2. 66% b. 65% c. 59% d. 35%

1. How much was Rich Mama's break-even point in pesos?
2. P 196,960 b. P 371,420 c. P 200,000 d. P 520,000

1. Based on the above information, the margin of safety in pesos of Rich Mama was
2. P 803,040 b. P 628,580 c. P 800,000 d. P 480,000

1. Based on the above information, the margin of safety in units of Rich Mama was
2. 40.152 b. 31,429 c. 40,000 d. 24,000

1. Based on the above information, the degree of operating leverage of Rich Mama was
2. 1.25 b. 1.50 c. 1.75 d. 2.00

1. Refer to Question number 19, if Rich Mama's sales increased by 10%, what is the company's new operating income taken into consideration the increase in sales?
2. P 585,000 b. P598,000 c. P611,000 d. P624,000