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Sunshine Inc., sells a single product. The companys most recent income statement is given below: Sales (4,000 units) P120,000 Less: Flexible expenses 68,000 Contribution margin

Sunshine Inc., sells a single product. The companys most recent income statement is given below:

Sales (4,000 units) P120,000

Less: Flexible expenses 68,000

Contribution margin P52,000

Less: Capacity-related expenses 40,000

Net income P12,000

Determine the following:

a. The contribution margin per unit is P__________.

b. If sales are doubled to P240,000, total flexible (variable) costs will equal to P__________.

c. If sales are doubled to P240,000, total capacity-related (fixed) costs will equal to P__________.

d. If 10 more units are sold, profits will increase by P___________.

e. Compute how many units must be sold to breakeven. _________________.

f. Compute how many units must be sold to achieve a profit of P20,000.

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