Course Hero Logo

10000 units breakeven proposed p225000 p18 12500

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 45 - 49 out of 49 pages.

10,000 unitsBreakeven, proposed (P225,000 ÷ P18)12,500 units116.Answer:CThe degree of operating leverage (DOL)during the month that the newDownloaded by Study Resources ([email protected])lOMoARcPSD|10653629
equipment would be used:(270,000 ÷ 45,000)6X(Please see solution for No. 94)117.Answer:ABreakeven units if there is a change in marketing method:P48,000 ÷ 68,000 unitsContribution margin per unit:(Fixed cost + profit) ÷ Units sold(P48,000 + P60,000) ÷ 18,000 unitsP6.00118.Answer:BThe percentage increase in profit can be calculated by multiplying the degree of operating leverage (DOL) by thepercentage increase in sales during the second month.The sales increased by 30% (P4,500 ÷ P15,000) and therefore the profit percentage increased by 180% (6 x 30%).The expected profit during the next month would be:P45,000 + (P45,000 x 1.8)P126,000119.Answer:CBreakeven Units:Fixed Costs ÷ Unit Contribution MarginP6,000,000 ÷ 30020,000pairs120.Answer:BContribution margin (P18,000 x 300)P5,400,000Less Fixed costs6,000,000Net lossP(600,000)121.Answer:AThe breakeven level for the sales outlet is expected to rise because of additional commission, a variable cost item, andsuch a commission is being paid for all pairs of shoes sold.Breakeven in pairs of shoes:6,000,000 ÷ (300 – 75)26,667pairs122.Answer:DThough an additional commission is paid on pairs of shoes sold, the breakeven point is not affected and shall remain at20,000 because the additional commission applies only to number of pairs of shoes sold in excess of breakeven level.The profit contribution by the 5,000 pairs is based on reduced contribution margin per pair.Profit:5,000 x (300 – 50)P1,250,000Alternative Solution:Sales (25,000 x P800)P20,000,000Downloaded by Study Resources ([email protected])lOMoARcPSD|10653629
Variable costs (24,000 x P500)12,750,000Total contribution margin7,250,000Fixed costs600,000ProfitP1,250,000123.Answer:ABecause the breakeven level is unchanged, the calculation of the number of pairs to earn P900,000 issimple.Theamount of the desired profit will be contributed by the number of pairs of shoes in excess of breakeven, each contributingP250.20,000 +(P900,000 ÷ 250)23,600pairs124.Answer:B300X – P6,000,000 = 440X – P8,142,000140X = P2,142,000X = 15,300pairs125.Answer:ABreakeven peso sales:P1,800,000 ÷ 0.3P6,000,000CMR = P1,755,000 ÷ P5,850,00030%126.Answer:BAdditional contribution margin P800,000 x 0.30P240,000Additional fixed cost160,000Increase in profitP80,000127.Answer:BSales39,000 x P270P10,530,000Variable cost 39,000 x P2108,190,000Contribution margin2, 340,000Fixed cost2,400,000Net lossP(60,000)128.Answer:BOriginal unit contribution margin(1,755,000 ÷ 19,500)P90.00Less increase in packaging cost7.50New Unit contribution marginP82.50Unit sales required:(P1,800,000 + P97,500) ÷ P82.5023,000129.Answer:ABreakeven units, Automated(P1,800,000 + P720,000) ÷ (P90 + P30)P2,520,000 ÷ 9021,000Breakeven units, Present(P1,800,000 ÷ 90)20,000Increase in breakeven units1,000Downloaded by Study Resources ([email protected])lOMoARcPSD|10653629
130.Answer:CThe computation of the indifference point for the two processes can be determined by dividing the increase in fixed costsby the decrease in variable cost per unit because the selling price was unchanged.

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 49 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Summer
Professor
N/A
Tags
Trigraph, study resources

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture