1. Use the following information to answer the six questions below.

Variable Manufacturing Cost Per Unit ------------20

Variable selling cost per unit ------------------------25

Selling Price per unit ---------------------------------100

Fixed Manufacturing cost per unit ----------------30

Fixed selling cost per unit ---------------------------10

Expected production and sales ---------------=1000 units

Questions:

1. Contribution Margin per unit is?
2. The Contribution Margin ratio is?
3. Break-even point for the product is?
4. If the firm wants to earn P70,000 in pre-tax profit, sales revenue must be equal to?
5. If the firm wants to earn P70,000 in pre-tax profit, contribution margin must equal to?
6. If the tax rate is 40 percent how many units must be sold to earn an after tax profit of P60,000?

2. The following are taken from Green Companys income statement:

Net Income P30,000

Fixed Costs 90,000

Sales 200,000

Contribution Margin Ratio 60%

1. The companys margin of safety amount is?
2. The margin of safety in percentage form is?