# 25 if the selling price is p14 per unit the breakeven

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25. If the selling price is P14 per unit, the breakeven point in units (rounded to the nearest hundred)for surge protectors is:a.10,000 unitsb.8,600 unitsc.20,000 unitsd.15,000 units
26. How many surge protectors (rounded to the nearest hundred) must Tribal sell at a selling price ofP14 per unit to gain P30,000 additional operating income before taxes?
27. How many surge protectors (rounded to the nearest hundred) must Tribal sell at a selling price ofP14 per unit to increase after tax income by P30,000?Tribal effective tax rate is 40%.
28. Anna Co. would like to market a new product at a selling price of P15 per unit.Fixed costs for thisproduct are P1,000,000 for less than 500,000 units of output and P1,500,000 for 500,000 or moreunits of output.The contribution margin percentage is 20%.How many units of this product mustbe sold to earn a target operating income of P1 million?
29. SPC & Company has sales of P400,000 with variable costs of P300,000 fixed costs of P 120,000.By how much would SPC need to increase its sales in order to achieve a target operating incomeof 10% of sales?a.P462,000b.P400,000c.P800,000d.P500,000
30. In using cost-volume-profit analysis to calculate an expected sales level expressed in units, whichof the following should be subtracted from fixed costs in the numerator?
Problem 1We are given the following information for the B Corporation.Sales (credit)P 7,200,000Cash300,000Inventory2,150,000Current liabilities1,400,000Asset turnover1.20 timesCurrent ratio2.50 timesDebt-to-assets ratio40%Receivable turnover8 timesCurrent assets are composed of cash, marketable securities, accounts receivable, and inventory.Calculate the following balance sheet items.a.Accounts receivableb.Marketable securitiesc.Fixed assetsd.Long-term debtProblem 2Effects of Financial LeverageSeveral investors are in the process of organizing a new company.The investors believe thatP2,600,000 will be needed to finance the new company’s operation, and they are considering threemethods of raising this amount of money.Method A:All P2,600,000 would be obtained through issue of common stockMethod B:P 1,300,000 would be obtained through issue of common stock and the other P1,300,000would be obtained through issue of P100 par value, 12% preferred stock.Method C:P 1,300,000 would be obtained through issue of common stock, and the other1,300,000 would be obtained through issue of bonds carrying an interest rate of 12%.P
The investors organizing the new company are confident that it can earn P520,000 each year beforeinterest and taxes.The tax rate will be 30%.Required:1.Assuming that the investors are correct in their earnings estimate, compute the net incomethat would go to the common stockholders under each of the three financing methods listedabove.2.Using the income data computed in (1) above, compute the return on common equity undereach of the three methods
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Term
Fall
Professor
MARIONMCHUGH