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The Accountant of Squall Lion-heart Integrated Industries, a company engages in producing luxury cars presented to the management the chart below: (Note: X-axis unit sold
The Accountant of Squall Lion-heart Integrated Industries, a company engages in producing luxury cars presented to the management the chart below: (Note: X-axis unit sold and Y-axis peso equivalent) 17,500,0D0.00 15.000,000.00 12,500,0D0.00 10,040,000.00 4Total Cost 7,500,0D0.00 Fixed Cost 5,000,000.00 2.500,000.00 1 2 3 5 55. If the selling price of luxury car is 2,600,000.00 per unit, what is the breakeven point in units? a. 20 cars c. 30 cars b. 25 cars d. Answer not given 56. Assume that a total number of cars produced are 10 units, what is company's fixed cost? a. 250,000.00 c. 2,500,000.00 b. 500,000.00 d. Answer not given57. If the company sold 11 cars at a selling price of 2,800,000.00 each. Under ceteris paribus, net income after tax of 30.00% or loss will be? a. 800,000.00 profit c. 1,700,000.00 loss b. 560,000.00 profit d. Answer not given 58. Suppose the out of 20 cars produced only 13 were sold, what is the carrying amount of cars inventory under variable costing? a. 19,250,000.00 c. 17,500,000.00 b. 18.375,000.00 d. Answer not given 59. Presume that the company intends to increase the fixed cost by 11,000,000.00 to strengthen marketing campaign and expected that the original sales of 30 units will be increased by 20.00%. Selling price remains at 2,600,000.00. What is the net effect of these changes if the current variable costs are to be reduced by 300,000.00 under the new proposal? a. profit will decrease to 400,000.00 b. profit will increase by 900,000.00 c. profit will increase by 400,000.00 d. No effect
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