In the first quarter of the current year, Andrews Company had a breakeven point of P1,200,000...

 

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In the first quarter of the current year, Andrews Company had a breakeven point of P1,200,000 based on a selling price of P800 per unit and a fixed cost of P420,000. In the second quarter of the current year, the selling price and the variable cost did not change but the breakeven point increased to P1,500,000. REQUIRED: 33. Compute the variable cost for the first quarter. 34. Compute the contribution margin ratio for the first quarter. 35. Compute the increase in fixed cost in the second quarter 36. If the company wants to have a net income of P350,000 in the third quarter, compute the amount of sales? 37. Based on the answer in # 36, compute themargin of safety percentage. 38. Based on the answer in #36, compute the degree of operating leverage 39. If the sales in the fourth quarter increase by 10% from the third quarter, what is the net income in the fourth quarter? In the first quarter of the current year, Andrews Company had a breakeven point of P1,200,000 based on a selling price of P800 per unit and a fixed cost of P420,000. In the second quarter of the current year, the selling price and the variable cost did not change but the breakeven point increased to P1,500,000. REQUIRED: 33. Compute the variable cost for the first quarter. 34. Compute the contribution margin ratio for the first quarter. 35. Compute the increase in fixed cost in the second quarter 36. If the company wants to have a net income of P350,000 in the third quarter, compute the amount of sales? 37. Based on the answer in # 36, compute themargin of safety percentage. 38. Based on the answer in #36, compute the degree of operating leverage 39. If the sales in the fourth quarter increase by 10% from the third quarter, what is the net income in the fourth quarter?

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