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Western Company produces and sells devices. The following information are available: Budgeted variable costs P147,000 Budgeted fixed costs P227,500 Budgeted sales are P420,000 Required: What

Western Company produces and sells devices. The following information are available:

Budgeted variable costs P147,000

Budgeted fixed costs P227,500

Budgeted sales are P420,000

Required:

  1. What is the budgeted operating income?

  2. What is the variable cost ratio?

  3. What is the break-even point in sales pesos?

  4. What is the contribution margin?

  5. What is the contribution margin ratio?

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