The Punch Bowl Corp. produces and sells two products, P and B. In prior year, Punch

Bowl has sold 3 units of product P for every unit of product B. Selected data on these products

show the following:

P B

Unit selling price P10 P15

Unit variable cost 7 9

Total fixed costs

P600,000

For the coming year, the sales mix is expected to change so that 2 units of product B will be sold for every unit of product P.

1. Determine the number of units for each product that must be sold in order to recover the

total fixed cost in prior year.

2. Determine the number of units for each product that must be sold in the coming year in

order to breakeven.

3. Determine the number of units for each product that must be sold in the coming year in

order to realize a profit of P500,000 before tax.

4. Determine the weighted contribution margin per unit in prior year.

5. Determine the total contribution margin in the coming year.