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1) Given the selling price at P120 per unit; contribution margin...

1) Given the selling price at P120 per unit; contribution margin ratio at 25% and fixed costs of P250,000, the total variable expenses at the break-even point would be:

A. 350,000           B. 750,000           C. 450,000           D. 250,000


2) The following information pertains to Mete Company: Sales P400,000 Variable costs 80,000 Fixed costs 20,000 Mete's breakeven point in peso sales is

 A. 20,000           B. 25,000            C. 80,000            D. 100,000


3) DEF Company is a retailer for video disks. The projected net income for the current year is P200,000 based on sales volume of 200,000 video disks. DEF has been selling the disk for P16 each. The variable cost consists of P10 unit purchase price of the disks and handling cost of P2 per disk. DEF's annual fixed costs are P600,000.

What is the company's break-even point for the current year in number of video disks?

 A. 152,000        B. 150,000          C. 155,000          D. 140,000


4) A recent income statement of Nixon Corporation reported the following data:

Sales revenue                   P 5,000,000

Variable costs                   3,000,000

Fixed costs                         1,600,000

If these data are based on the sale of 10,000 units, the contribution margin per unit would be:

A. 40     B. 140  C. 200    D. 460

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