Thus 100 1800 4,090 5090 um Assume that the firm whose cost structure is depicted in the figure expects to produce a loss for the upcoming period. The loss would be shown on the graph A. by the area immediately above the break-even point by the area immediately below the total cost line. by the area diagonally to the right of the break even point. D. by the area diagonally to the left of the break even point . 13. Adobe Company sold 100.000 units of its product at P20 per unit. Variable costs were P14 per unit, consisting of manufacturing costs of P11 and selling costs of P3 Fixed costs, which were incurred uniformly throughout the year, amounted to P792,000 (manufacturing costs of P500,000 and selling expenses of P292,000) There had been no beginning or ending inventories. If labor costs were 50 percent of variable costs and 20 percent of fixed costs, a 10 percent increase in wages and salaries would increase the number of units required to break even to A. 152,423 C. 175.617 B. 143.875 D 120.933 14 The management of Mesa Company has performed cost studies and projected the following annual costs based on 60,000 units of production and sales' Total Percent of Variable Annual Portion of Total Costs Annual Costs Direct material P600,000 100 Direct labor 720,000 Mig. Overhead 400,000 50 Selling costs 192,500 25 What selling price will yield a 15 percent profit from sales of 60,000 units? A. P41.67 C P37 50 B. P27.30 D. P35 42 15, The Happy Meal has two restaurants that are open 24 hours a day Fixed costs Jor the two restaurants together total P450,000 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is P6 00. The average cost of food and other variable cost for each customer is P3 20, The income tax rate is 30 percent. Target profit is P105.000 . If the number of sales checks is 150,000, how much will be the profit? A. P225,000 C P189,000 P120,000 P197 250