POGI Company sells its products at P20 per unit. Variable costs is P14 per unit, composing...
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POGI Company sells its products at P20 per unit. Variable costs is P14 per unit, composing of manufacturing cost of P11.00 and selling cost of P3.00. Fixed cost is incurred uniformly throughout the year and amounts to P792,000 (manufacturing cost of P500,000 and selling cost of P292,000). As of this year, they are expected to sell 150,000 units. REQUIRED: 1. Create a traditional income statement for POGI Company. 2. Create a contribution margin approach income statement for POGI Company. 3. What is the contribution margin per unit of POGI Company? 4. What is the contribution margin ratio of POGI Company? 5. What is the breakeven point in units? 6. What is the breakeven point in pesos? POGI Company sells its products at P20 per unit. Variable costs is P14 per unit, composing of manufacturing cost of P11.00 and selling cost of P3.00. Fixed cost is incurred uniformly throughout the year and amounts to P792,000 (manufacturing cost of P500,000 and selling cost of P292,000). As of this year, they are expected to sell 150,000 units. REQUIRED: 1. Create a traditional income statement for POGI Company. 2. Create a contribution margin approach income statement for POGI Company. 3. What is the contribution margin per unit of POGI Company? 4. What is the contribution margin ratio of POGI Company? 5. What is the breakeven point in units? 6. What is the breakeven point in pesos?
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Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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