Question
SOLUTION NEEDED 1. The contribution margin per unit is P5, while the direct fixed costs are P30,000 and the allocated fixed costs are P60,000. What
SOLUTION NEEDED
1. The contribution margin per unit is P5, while the direct fixed costs are P30,000 and the allocated fixed costs are P60,000.
What is the break-even point in units?
a. 18,000
b. 36,000
c. 9,000
d. 27,000
2.
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)
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