Rices Company sells the country's highest quality of silver linen. The company had 3 types of products:

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Rices Company sells the country's highest quality of silver linen. The company had 3 types of products: XX. YY and ZZ. The company sells three units of XX for each unit of ZZ and two units of YY for each unit of XX. During the current year, revenues had increased by 50% resulting to 200% increase in operating income.

1. If the company sold XX for P30,000,000, what is the break even point for product YY?

2. Using the given in the previous number, what is the degree of operating leverage?

3. Using the given in the previous number, what is the total margin of safety in peso?

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Principles Of Accounting Volume 2 Managerial Accounting

ISBN: 9780357364802

1st Edition

Authors: OpenStax

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Posted Date: Jul 20, 2023 06:24 AM

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Rices Company sells the country's highest quality of silver linen. The company had 3 types of products:

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To calculate the breakeven point for product YY the degree of operating leverage and the total margin of safety in peso we first need to find the sale... View the full answer

Principles Of Accounting Volume 2 Managerial Accounting

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