Question
SadBoi, Inc. produces high quality water-proof tissue papers. Mr. Ramos, Sadboi's Managerial Accountant, has developed an annual formula using observations from the production of 10,000
SadBoi, Inc. produces high quality water-proof tissue papers. Mr. Ramos, Sadboi's Managerial Accountant, has developed an annual formula using observations from the production of 10,000 to 25,000 units to estimate its production costs; Y = P960,000 + P93(x). He sells each roll for P170. Commissions paid to sales agents are 10% of sales. Sadboi's monthly fixed costs are as follows:
Overhead costs - P80,000 Selling and administrative expenses - P20,000.
1. How much is the break-even point in sales?
2. Assuming the Company is currently producing 23,000, how much is the percentage increase in profit if units sold increases by 40% for the following year?
Bluejeans Company has an after-tax profit of P140,000. Bluejeans has a return on sales of 20% and the tax rate is 30%. The total fixed costs of Bluejeans amounts to P100,000, what is the contribution margin ratio if the sales volume increases to 150%? (round of your answers to four decimal places, do not use percentage. Wrong: 27.28%, Right 0.2728)
Daminaman Corp, is selling skin care products namely: muraytic acid, zondrox and samoxicillin. The products are being sold in a 3:2:1 ratio. The total fixed factory overhead amounts to P1,000,000. Daminaman also provides 5% commissions based on selling price to its sales agents. Fixed selling costs amounted to P120,000. The selling price and contribution margin ratio are as follows: Muraytic Acid Zondrox Samoxicillin Selling Price P30 P50 P40 CM% 20% 30% 50% What is the composite units to break-even? (Round-off answers to the nearest whole number)
OBrief solution and explantion. Thank you
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