Sales (20,000 units) P3,000,000

Less:Cost of Goods Sold 1,800,000

Gross Profit P1,200,000

Less:Selling and Administrative Expenses 800,000

Operating Income 400,000

Other data:

v1/3 of the cost of goods sold is fixed.

v75% of the selling and administrative expenses is variable.

Required: Based on the above income statement and other data, determine the following:

A. Total fixed cost

B. Variable cost per unit

C. Variable cost ratio

D. Contribution margin per unit

E. Contribution margin ratio

F. Break-even point in units

G. Break-even point in pesos

H. Required sales in units and in pesos if the company desires to earn operating income of P600,000.

I. Required sales in units and in pesos if the company wants to earn profit of 20% 0f sales.